Business Sales on Pace to Surpass Highest Prices on Record
A few months ago, we wrote that the number of businesses sold in 2018 was on pace to surpass all previous recorded years. This still looks to be true, and in addition, business sales in 2018 are on track to surpass previous recorded sales prices, according to a recent Biz Buy Sell report.
The median sales price for the sold businesses in the 3rd quarter was $249,000, up 10.7% from the Q3 2017 reporting, which is the highest amount recorded since Biz Buy Sell started collecting this data in 2007. In addition, the median asking price also grew to $269,000, an increase of 7.6% from the Q3 2017, which translates to 93% sales to asking price ratio, up from 92% in Q3 2017.
The Biz Buy Sell report attributes these record figures to stronger business financials and healthier businesses. While owners are getting top dollar for their businesses, the buyers are also taking over more capable businesses, which is supported by the fact that the median revenue for this period was $530,995 and the median cash flow was $116,229. These figures were up 7.4% and 2.8% as compared to Q3 2017 figures.
Additional highlights through the 3rd quarter of 2018 include:
- A total of 2,685 transactions closed, a 3.7% increase from the same time last year, keeping 2018 on a record-breaking pace for the number of businesses sold.
- The median asking price for businesses listed for sale in Q3 was $279,000, up 3.3% as compared to a year ago.
Tampa Bay specific highlights from the report include:
- Small business listing metrics through Q3 2018
- Businesses listed for sale: 1,025 – 1,035 last quarter
- Average listing price: $249,000 – $219,000 last quarter
- Average annual revenue: $444,000 – $420,000 last quarter
- Average cash flow: $110,000 – $102,139 last quarter
- Closed small business transaction metrics for full year 2017
- Number of business sales: 487
- Average sales price: $295,000
- Average annual revenue: $457,609
- Average cash flow: $122,253
If you would like to read the entire Biz Buy Sell report, feel free to click on the following link:
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