In the first quarter of 2019, the number of small business transactions remains strong. Small business transactions remain at historically high levels, despite a small decline. Here are some facts according to a BizBuySell article, “Number of Small Businesses Changing Hands Dips Slightly, But Market Remains Ripe For Buyers and Sellers”.
Statistics
Now is the time for both buying and selling a business. The number of businesses sold in the first quarter of 2019 dropped by 6.5% compared to 2018. However, keep in mind that the number of completed transactions remains strong. Inventory is increasing, with a 6.1% increase in listings in the first quarter of 2019 when compared to the same period in 2018.
Although the market is strong, the article did note that some experts feel that there are signs that the market could become more challenging. This is due, in part, to the prospect that interest rates and financing could become increasingly challenging and more expensive. This indicates that now is a smart time to both buy and sell a business.
The financials of sold businesses in the first quarter remains strong. The median revenue of sold businesses jumped 6.5% when compared to the first quarter of 2018.
Top Regions
The top markets by closed small business transaction are:
- Miami – Fort Lauderdale – Miami Beach
- Los Angeles – Long Beach – Santa Ana
- New York – Northern New Jersey – Long Island
- Tampa – St. Petersburg – Clearwater
- Dallas – Fort Worth – Arlington
The top Markets by median sale price are:
- Charlotte – Gastonia – Concord
- San Francisco – Oakland – Fremont
- Denver – Aurora
- Dallas – Fort Worth – Arlington
A Strong Market
The experts believe that the market remains strong and active. Here is what they believe is helping to fuel a great deal of activity:
- The wave of retiring baby boomers looking to exit their businesses.
- Historically low interest rates.
- The rise of the next generation of entrepreneurs.
Now may be the time to consider buying or selling a business. EBIT Associates can help you buy a business or sell a business.