The quarterly small business sales report from BizBuySell is out. The 3rd Quarter of 2017 shows we are on pace to record the highest number of business sales since 2007. This is a great news for baby boomer business owners!
Business sale transactions are up 24% from last year. Contributing factors are a solid economy, optimism for tax reform and relaxed regulations under our new president.
The chart below shows that the average revenue is up 11.2% from $456,768 to $507,865. Our businesses are showing growth and buyer are feeling more confident about purchasing them.
The median cash flow is up 6.9% as well from $105k to $113k with the average sales multiple going from 2.22 to 2.29. And the average number of days on the market went from 154 days to 146 days.
At Murphy, we are seeing a strong demand for smaller businesses, those under $350k priced, while those priced over $350k are a little less in demand and are taking a little longer to sell than before. we suspect the strong stock market may have buyers holding on to their savings and not making the larger purchases at this time. We predict that if the stock market weakens, we will see a bigger demand for the over $350k businesses.
Whether your business is smaller or larger, the economy is doing well and buyers have low-cost access to money. Overall this means it is a great time to sell your business. If you have questions about selling, please call us!