Did you know that BizBuySell, the world largest business-for-sale marketplace, recently released an article that discussed 2018 third quarter results? Fortunately for you, we have everything you need to know from the article. The biggest take-away? Sale prices of businesses sold in the third quarter have reached new highs and businesses are changing hands more than ever before.
The big sell-off is here. With respect to timing, there are numerous reasons to consider why now might be the perfect time to sell:
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Small businesses sold for a median price of $249,000 in the third quarter, up 10.7 percent from the same time last year and the highest amount since BizBuySell started collecting data in 2007.
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There is a 93 percent sales-to-ask ratio, up slightly from the 92 percent reported in Q3 2017. The strong sales-to-ask ratio likely means that buyers and sellers are seeing eye-to-eye in terms of value.
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While owners are getting top dollar for their business, buyers are inheriting businesses with a better financial footing.
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A total of 2,685 closed transactions were reported in the third quarter of 2018, a 3.7 percent increase from the same time last year.
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Businesses added to the market in the 3rd quarter continue to display impressive financials, which should be great for new buyers.
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Buyers are slightly more confident in today’s business-for-sale market than last year. 60 percent of owners said they are confident they would receive an acceptable sales price if they exited today.
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The median revenue and cash flow of listed businesses grew 4 percent and 5 percent respectively.
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Overall, with Baby boomers fueling a strong supply of financially healthy businesses hitting the market, BizBuySell data shows a market that should remain active for some time.
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BizBuySell said that they have had a few record-breaking years in a row in terms of transactions and it appears that 2018 will be no different.
