For the third consecutive year, a record number of small businesses changed hands, according to BizBuySell. The year’s brisk business sales represented a 4% increase over 2017 and a 30% jump from 2016. Their continues to be strong interest from Baby Boomers who are now ready to retire. Some owners are motivated to sell due to concerns over economic and political regulations and uncertainty. On the other hand, buyers also remain eager to try their hands at small business ownership.
Small businesses sold for a median price of $249,000 in the third quarter, a 9% increase over 2017.
In the Richmond, VA region, BizBuySell reported that average earnings multiples were 2.39X for full-year 2018. Meanwhile, average multiples were lower (2.12X) for the same time frame in Northern Virginia and in the Virginia Beach area (2.05X).
Light & Raphael Business Brokers has witnessed continued activity on the part of both buyers and sellers as interest rates remain low although climbing. We represented ten business owners in 2018 with the sale of their companies. Seller interest remains particularly active as we have signed up five sellers already in 2019.
As always, we would be more than happy to speak with buyers/sellers about potential business acquisitions or divestitures.
Source: Gavin Raphael