BizBuySell.com, the Internet’s largest business-for-sale marketplace, reported recently a record number of businesses changing hands in the second quarter of 2017.
A total of 2,534 closed transactions were reported in the second quarter of 2017, a 31 percent increase from this time last year. This brings the year-to-date total to 4,902 closed transactions. If this pace holds up, 2017 highest volume year on record.
Businesses sold in the second quarter grossed a median revenue of $490,000, an 11 percent increase over the same period last year. Median cash flow also increased 10.5 percent year-over-year to $116,000. Selling price as a multiple of cash flow increased to 2.34, while the average multiple of revenue remained steady at .62.
“Our recent conversations with brokers and previous research shows both buyers and sellers are confident in today’s business-for-sale environment,” said Bob House, president of BizBuySell.com and BizQuest.com. “This streak of record-number transactions confirms this sentiment and suggests many are capitalizing on today’s hot market.”
Moving into the second half of 2017, all signs point to continued growth in the business-for-sale market. Newly-listed businesses boast growing median revenues and cash flows, suggesting there’s still a strong supply of healthy businesses available.
“The latest quarterly data indicates the business-for-sale market is in great shape,” House said. “Barring unforeseen factors, we anticipate 2017 will set a new record for the number of businesses sold in a single year since we started reporting on this data in 2007.”
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