By Angus Loten
Sales of small businesses rose 8% in the second quarter over the same period last year, hitting the highest level since the closing months of 2008, with a growing number of smaller firms finding buyers, according to business-broker data.
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The median sale price last quarter was roughly unchanged at $150,000, with sales ranging from restaurants and stores, to manufacturers and other services. Buyers paid a median of $25,000 below asking prices, the report showed.
While the overall number of sales increased, the median revenue of businesses sold dropped by 6% to $340,000 from $361,274 last year. The decline suggests smaller businesses were being sold, according to BizBuySell general manager Mike Handelsman.
Handelsman said the upturn is likely the result of latent sellers waiting for signs of business performance to improve before going to market. It also reflects a slight thawing of capital markets, along with an increase in seller financing, he said.
“We’ve been anticipating an upward trend in the business-for-sale market as more profitable businesses start to become available for sale,” Handelsman said in a statement. After focusing on survival during the downturn, efforts to improve performance by small-business owners eager to sell have “begun to pay off,” he said.
He expects the market to strengthen further as capital availability improves throughout the year.
Business Intermediary
