According to BizBuySell.com’s First Quarter 2018 Insight Report, the first quarter of the year showed continued strong business sale activity, with record-breaking sales prices and number of transactions. Small businesses sold for a median sale price of $245,000 which was the highest median sale price since the company started tracking the data in 2007 – a 3.4% increase from the same period a year ago.
Additionally, BizBuySell’s latest small business owner poll shows that 72% of owners believe their financials will continue to rise in 2018, largely due to tax reform. The International Business Brokers Association (IBBA) and M&A Source 2018 Q1 Market Pulse Report reports that analysts tracking the M&A market are “optimistic about deal flow, with all sectors predicting an uptick in new engagements.”
While both reports come short of calling it a sellers’ market, the outlook is positive for business owners who are thinking about selling their businesses in the near future – with an emphasis on “near.” Quarter after quarter for the last year and a half, we’ve seen a record number of transactions and increasing sale prices.
But, this can’t last forever, as we know. And while the economy appears strong now, the future is always uncertain. In fact, some economists argue that we’re already beginning to see signs of the beginning of an economic downturn, not to mention the sheer number of baby boomers’ businesses on the market. Although optimism persists, there are economic concerns over tariffs and interest rates. All of which will have an impact on owners’ abilities to sell their businesses when they want to.
Which is why it’s more important than ever for business owners to start planning for their business transition! The first step to sell their business should be to get a Broker Opinion of Value. Empire Business Solutions, a leading independent business broker in Southern California, offers a FREE Broker Opinion of Value so an owner can know the range of values for this business.