Want to sell your business? Now may be the time. The general manager of the largest U.S. mom-and-pop businesses-for-sale website said Friday that the number of deals has been on the rise and so have prices.
BizBuySell.com's 2014 Insight Report, which aggregates statistics from brokers who use the site, reported 7,494 closed deals last year, a 6 percent increase from 2013. Both years were up more than 50 percent from the previous two. Listings at the end of 2014 were up about 3 percent year over year.
In New Jersey, the number of closed deals declined last year to 196 from 308, but other metrics were more or less in line with the national upward trends, said Bob House, general manager of BizBuySell, a division of real estate information provider CoStar Group Inc.
• The median sales price for closed deals nationwide rose from $180,000 in 2013 to $185,000 in 2014.
• The median annual revenue generated by businesses sold in 2014 was $417,600, an increase from $405,900 the year before.
• A typical business that sold in 2014 generated a cash flow, or net income plus depreciation, of $100,000, up from $97,000 in 2013.
Among the mom-and-pop companies, more and more baby boomer-business owners are looking to retire, so plenty of businesses are available, House said.
At the same time, business performance measures are improving with the economy, which is shoring up valuations for sellers, he said.
"Twenty-thirteen was our first real bounce-back year in transactions and business performance, and 2014 continued that trend," House said. Credit availability has improved but brokers say about half of the deals still involve some seller financing, he said.
Acquisitions of larger private companies, with sales in the $5 million to $1 billion range, also have been on the rise.
Alan Scharfstein, founder and president of The DAK Group in Rochelle Park, a middle market merger and acquisition adviser, agrees that it might be the best time for many who are thinking of selling to go for it.
The middle market is "very vibrant right now," and "our pipeline for 2015 is very strong," Scharfstein said.
"We did 22 transactions in 2014 up by about 25 percent, and we expect 2015 will be a better year," he said.
Here are the reasons:
• Buyers are finding it hard to grow organically, and foreign buyers, especially from Europe, want in on the action in a resurgent U.S. economy.
• Corporations have been hoarding cash and have plenty of buying power. "There is a tremendous amount of liquidity out there to do transactions," Scharfstein said.
• Companies are performing better, which makes them more attractive as sellers and more able and willing to negotiate as buyers.
"Some business owners are considering selling because they don't think this frothy market will continue forever," Scharfstein said.
Article at: BY RICHARD NEWMANBizBuySell.com's 2014 Insight Report, which aggregates statistics from brokers who use the site, reported 7,494 closed deals last year, a 6 percent increase from 2013. Both years were up more than 50 percent from the previous two. Listings at the end of 2014 were up about 3 percent year over year.
In New Jersey, the number of closed deals declined last year to 196 from 308, but other metrics were more or less in line with the national upward trends, said Bob House, general manager of BizBuySell, a division of real estate information provider CoStar Group Inc.
• The median sales price for closed deals nationwide rose from $180,000 in 2013 to $185,000 in 2014.
• The median annual revenue generated by businesses sold in 2014 was $417,600, an increase from $405,900 the year before.
• A typical business that sold in 2014 generated a cash flow, or net income plus depreciation, of $100,000, up from $97,000 in 2013.
Among the mom-and-pop companies, more and more baby boomer-business owners are looking to retire, so plenty of businesses are available, House said.
At the same time, business performance measures are improving with the economy, which is shoring up valuations for sellers, he said.
"Twenty-thirteen was our first real bounce-back year in transactions and business performance, and 2014 continued that trend," House said. Credit availability has improved but brokers say about half of the deals still involve some seller financing, he said.
Acquisitions of larger private companies, with sales in the $5 million to $1 billion range, also have been on the rise.
Alan Scharfstein, founder and president of The DAK Group in Rochelle Park, a middle market merger and acquisition adviser, agrees that it might be the best time for many who are thinking of selling to go for it.
The middle market is "very vibrant right now," and "our pipeline for 2015 is very strong," Scharfstein said.
"We did 22 transactions in 2014 up by about 25 percent, and we expect 2015 will be a better year," he said.
Here are the reasons:
• Buyers are finding it hard to grow organically, and foreign buyers, especially from Europe, want in on the action in a resurgent U.S. economy.
• Corporations have been hoarding cash and have plenty of buying power. "There is a tremendous amount of liquidity out there to do transactions," Scharfstein said.
• Companies are performing better, which makes them more attractive as sellers and more able and willing to negotiate as buyers.
"Some business owners are considering selling because they don't think this frothy market will continue forever," Scharfstein said.
Want to sell your business? Now may be the time. The general manager of the largest U.S. mom-and-pop businesses-for-sale website said Friday that the number of deals has been on the rise and so have prices.
BizBuySell.com's 2014 Insight Report, which aggregates statistics from brokers who use the site, reported 7,494 closed deals last year, a 6 percent increase from 2013. Both years were up more than 50 percent from the previous two. Listings at the end of 2014 were up about 3 percent year over year.
In New Jersey, the number of closed deals declined last year to 196 from 308, but other metrics were more or less in line with the national upward trends, said Bob House, general manager of BizBuySell, a division of real estate information provider CoStar Group Inc.
• The median sales price for closed deals nationwide rose from $180,000 in 2013 to $185,000 in 2014.
• The median annual revenue generated by businesses sold in 2014 was $417,600, an increase from $405,900 the year before.
• A typical business that sold in 2014 generated a cash flow, or net income plus depreciation, of $100,000, up from $97,000 in 2013.
Among the mom-and-pop companies, more and more baby boomer-business owners are looking to retire, so plenty of businesses are available, House said.
At the same time, business performance measures are improving with the economy, which is shoring up valuations for sellers, he said.
"Twenty-thirteen was our first real bounce-back year in transactions and business performance, and 2014 continued that trend," House said. Credit availability has improved but brokers say about half of the deals still involve some seller financing, he said.
Acquisitions of larger private companies, with sales in the $5 million to $1 billion range, also have been on the rise.
Alan Scharfstein, founder and president of The DAK Group in Rochelle Park, a middle market merger and acquisition adviser, agrees that it might be the best time for many who are thinking of selling to go for it.
The middle market is "very vibrant right now," and "our pipeline for 2015 is very strong," Scharfstein said.
"We did 22 transactions in 2014 up by about 25 percent, and we expect 2015 will be a better year," he said.
Here are the reasons:
• Buyers are finding it hard to grow organically, and foreign buyers, especially from Europe, want in on the action in a resurgent U.S. economy.
• Corporations have been hoarding cash and have plenty of buying power. "There is a tremendous amount of liquidity out there to do transactions," Scharfstein said.
• Companies are performing better, which makes them more attractive as sellers and more able and willing to negotiate as buyers.
"Some business owners are considering selling because they don't think this frothy market will continue forever," Scharfstein said.
Article at: Market improves for selling a business - Business:
BizBuySell.com's 2014 Insight Report, which aggregates statistics from brokers who use the site, reported 7,494 closed deals last year, a 6 percent increase from 2013. Both years were up more than 50 percent from the previous two. Listings at the end of 2014 were up about 3 percent year over year.
In New Jersey, the number of closed deals declined last year to 196 from 308, but other metrics were more or less in line with the national upward trends, said Bob House, general manager of BizBuySell, a division of real estate information provider CoStar Group Inc.
• The median sales price for closed deals nationwide rose from $180,000 in 2013 to $185,000 in 2014.
• The median annual revenue generated by businesses sold in 2014 was $417,600, an increase from $405,900 the year before.
• A typical business that sold in 2014 generated a cash flow, or net income plus depreciation, of $100,000, up from $97,000 in 2013.
Among the mom-and-pop companies, more and more baby boomer-business owners are looking to retire, so plenty of businesses are available, House said.
At the same time, business performance measures are improving with the economy, which is shoring up valuations for sellers, he said.
"Twenty-thirteen was our first real bounce-back year in transactions and business performance, and 2014 continued that trend," House said. Credit availability has improved but brokers say about half of the deals still involve some seller financing, he said.
Acquisitions of larger private companies, with sales in the $5 million to $1 billion range, also have been on the rise.
Alan Scharfstein, founder and president of The DAK Group in Rochelle Park, a middle market merger and acquisition adviser, agrees that it might be the best time for many who are thinking of selling to go for it.
The middle market is "very vibrant right now," and "our pipeline for 2015 is very strong," Scharfstein said.
"We did 22 transactions in 2014 up by about 25 percent, and we expect 2015 will be a better year," he said.
Here are the reasons:
• Buyers are finding it hard to grow organically, and foreign buyers, especially from Europe, want in on the action in a resurgent U.S. economy.
• Corporations have been hoarding cash and have plenty of buying power. "There is a tremendous amount of liquidity out there to do transactions," Scharfstein said.
• Companies are performing better, which makes them more attractive as sellers and more able and willing to negotiate as buyers.
"Some business owners are considering selling because they don't think this frothy market will continue forever," Scharfstein said.
Article at: Market improves for selling a business - Business:
For additional information regarding Florida business sales, acquisitions and valuations, please contact Eric J. Gall at info@buysellflbiz.com or 239.738.6227. Also, visit our Florida Business Exchange website at www.fbxbrokers.com and my personal website at www.buysellflbiz.com.
No comments:
Post a Comment