Business sellers getting top dollar in early 2016 and business owners are cashing in here in Dallas and elsewhere.
Business Sellers Getting Top Dollar
BizBuySell reported earlier in April, that the median revenue and median cash flow of small businesses sold in the first quarter of 2016 reached their highest levels since they first started tracking data back in 2007. This is notable as the increased financials are resulting in higher sale prices for small businesses. The full results are included in BizBuySell’s Q1 2016 Insight Report, which aggregates statistics from ‘business for sale’ transactions reported by participating business brokers across the US.
Businesses that were sold in the first quarter of 2016 grossed a median revenue of $478,000 compared to $442,000 same quarter 2015, and a median cash flow of $110,000 compared to $104,000. These figures represent the highest median revenue and median cash flow of sold businesses on record.
The improving financials are allowing sellers to ask for, and receive more, during the sales process. The median small business asking price grew 11% in the past year to $249,500, while the median sale price increased 10% year-over-year from $200,000 to $220,000.
The increase in sale price is a great sign for sellers as it suggests the market may be shifting in their favor.
As small business financials strengthen and sale prices grow accordingly, it appears more owners are deciding that now is a good time to sell. The number of businesses listed for-sale grew more than 6.4 percent from the same time last year.
Before moving forward with a sale, it is important that you understand the all steps and processes involved. Taking the time to determine what you want from the sale, planning carefully, obtaining professional advice from Elan Capital, and negotiating a satisfactory price and acceptable terms will help make the sale a once in a lifetime success.
Remember, even if you think you may be many years away from selling your business, you should consider who your successors are and what you would have to do should you died unexpectedly. If you don’t have a workable exit strategy in place, your heirs may have no choice but to liquidate the business and sell off the assets, getting nothing for the one true asset, the years of goodwill you have worked so hard for.
Elan Capital Inc. can provide critical support to individuals who are typically going through the sale process for the first and only time. Make the best of it.
Questions? Thinking of selling? Give us a call. 888.615.1418