Business for Sale Market Picking Up Steam
Small business transactions are having a record 2017 according to Bob House, President of BizBuySell (a US based online marketplace listing businesses for sale).
Any truth in this or is this another industry insider talking up their book?
Bob claims that not only are sellers getting higher prices but that they are closing deals faster. He quotes a Q2 figure of closed sales running at 31% more than comparable figures for last year with an average sale price of $229K and average time to sale of 168 days (last year = $199K and 178 days).
The sector with the biggest increase in prices has been the restaurant sector.
As we move into the back end of 2017, these market trends show that there are deals to be had for both small business buyers and sellers. Seller activity is delivering a strong inventory of healthy businesses to the market, while buyer demand remains strong.
In the middle east, however, M&A activity in H1 has fallen by 23%. Q2 2017 saw 80 deals worth $12.7 billion (Q2, 2016 = 135 deals totalling $20.1 billion). And the EU has been the most targeted region for cross border deals in 2017.
During the second quarter of 2017, the EU saw 321 inbound deals sealed, worth a total of $138 billion and accounting for 41 percent of cross-regional volume and 58 percent of value