2017 is turning into a record year for Small Business transactions-sales. Second quarter 2017 small business transactions are up 31% from last year according to the quarterly BizBuySell.com transaction report on nationwide sales by Business Brokers. In short, 2017 is a great time to sell a business.
The improved economy along with an aging population of business owners ready to retire has created a very active business for sale market. Many owners that were close to retirement in 2007 and 2008 choose to wait for the economy to improve to sell their business. Over the past several years many small businesses have rebounded nicely from the 2007-08 meltdown and are doing very well again. With sales and earnings built back up, these owners are now ready to sell their business and retire.
Not surprisingly this heated up market for business purchases has also reduced the time on market as well as increasing the transaction values and earnings multiples.
Traditionally the second and fourth quarters are the strongest for sales, so 2017 is on track to be another record year.
SBA financing has certainly been a factor now the lenders are eagerly looking for SBA loans. Obtaining an SBA loan for the purchase of a business has improved greatly with more lenders in the market and excellent financing terms.
Highlights from 2017 2nd Quarter Small Business Sales Report.
- Sales (closed transactions) up 31% from 2016!
- Gross sales of businesses sold up 11% from 2016
- Average days on market down 5.6%, to 168 days
- Breakdown by Industry
- Services represented 39% of transactions
- Retail 27%
- Restaurants 22%
- Manufacturing 4%
For the BizBuySell.com article and full 2017 2nd Quarter Transaction Report please see the links below: