One year after the onset of the pandemic, entrepreneurs continue to flock to high performing businesses causing median sale prices to jump 30% compared to Q1 of 2020, according to BizBuySell’s Insight Report. The $350,000 Q1 median sale price is the highest since BizBuySell began collecting the data in 2007 as are the $680,020 median revenue and $147,752 median cash flow for reported transactions. The latter figures represent a 15% and 8% YOY increase respectively.
Regulations associated with the Biden Administration are also likely to influence market activity. Most notable are expected capital gains increases. Thirty-one percent (31%) of owners are extremely concerned about tax increases in 2022, with another 23% very concerned.
The median sales price for businesses sold in the Richmond area (in BizBuySell’s database) was $270,000 in Q1 2021 with an earnings multiple of 2.97. Meanwhile, in Washington DC, the median sales price was $250,000 and the earnings multiple was 2.26.
Light & Raphael Business Brokers has sold several businesses in 2021 (with five more currently under contract). Seller interest has ramped up in the last few weeks with our firm currently onboarding multiple new clients. As always, we would be more than happy to speak with you or your clients about potential business acquisitions or divestitures.
Source: Gavin Raphael