Sales of Small Businesses Up…At a Cost to Sellers

There’s good news and bad news for small business owners looking to sell. On the bright side, sales of small businesses are up.  According to BizBuySell.com- sales of businesses with annual revenues under $350,000 a year rose 8% in the past year.  So, if you are trying to get a small business off your hands there’s a good chance that a buyer is out there.

Here’s the downside- the main reason for an increase in sales is that sellers are asking for less.    Many business owners are willing to accept a smaller price than they would in a better economy.  BizBuySell.com reports that in the second quarter the median asking price fell by $10,000 (from $249,00 to $239,000).  Although current prices are unfavorable for sellers, if you wish to expand and have capital to spend now is a fantastic time to buy small businesses.

If you are contemplating selling your small business in the near future, decide what is important to you.  Would you rather hold off on the sale until the economy further recovers and hope to find a buyer willing to pay more, or is it crucial to sell your company as soon as possible?

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Posted on July 19, 2011, in Uncategorized. Bookmark the permalink. 1 Comment.

  1. I like this post. It tells it like it is. There are nine things you don’t control that affect the value of your business. Right now its the economy, so prices are coming down. However, there are more people looking to become self employed so those people if they can afford it are looking for businesses to buy. Also be sure you run a process to sell. One buyer does not make a good sale you need multiple parties interested in the business.

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