Latest Stats Show Small Businesses Selling For Record Highs, But …
According to BizBuySell, an online platform for the sale of businesses, Q3 shows small businesses selling at the highest prices ever with a median price of $249,000, up 10.7% from a similar period in 2017.
However, this increase isn’t as a result of buyers being willing to pay higher multiples! It just happens that small businesses have been performing better and businesses being listed for sale had higher net profit than during similar periods in previous years.
However, completion prices (the price at which businesses sold) was 93% of asking prices, a slight increase from a previous figure of 92% … so there’s a slight increase in appetite from buyers.
With a business-for-sale playing field of equal benefit to both buyers and sellers, more businesses are changing hands than ever before. 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. This keeps 2018 on a record breaking pace for the number of businesses sold
Bear in mind that articles from the US tend to assume the universe ends at US borders and fail to mention that the data and stats doesn’t include anything from outside of the US. The US market is strongly influenced by geo-politics. The tarrifs/taxes are other local factors perhaps helping the market for small businesses in the US but which have no effect on businesses in Europe, Asia or elsewhere.