For the second consecutive, the market for small businesses was active, with an increase of more than 3 percent in the sales of businesses with approximately $360,000 in yearly revenue, according to BizBuySell.com.
Meanwhile, statistics analyzed by the website showed that the median revenue for the companies sold last year increased by nearly 7 percent.
The median sale price for companies that were purchased increased only slight – a 3.3 percent gain to $155,000. That indicates it remains a buyer’s market, according to BizBuySell.com general manager Curtis Kroeker.
He said sellers are helping to finance transactions and offering other incentives to help buyers who may be having trouble getting all the financing they need.
While seller financing might make up 20 to 30 percent of the sale of a small company in good times, sellers in today’s economy are often putting up 50 percent and even 70 percent of the financing, according to Joseph L. Caffrey, president and CEO of the Virginia Beach, Va. Brokerage firm Worldwide Business Brokers LLC.
The future for sales of small businesses looks positive, according to Kroeker, as long as the economy continues to recover slowly in 2012. “Barring a global economic shock, we expect a continued steady slow path to improvement,” he said.
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