BizBuySell Releases Second Quarter Insight Report for Business Sales
Online business-for-sale marketplace announces what businesses are selling for around the country
San Francisco, CA – July 9, 2008 – BizBuySell, the Internet's largest marketplace for buying or selling a small business, announced today the results of its Second Quarter 2008 Insight Report, which tracks trends on for-sale and sold businesses in the U.S.
Despite the current troubled economy, BizBuySell's small business transaction data shows that business prices and valuations are on the rise nationally. The median selling price for a small business jumped to $200,000 for the second quarter, an increase of $14,000 from the same time a year ago. Revenue and cash flow multiples have also risen.
BizBuySell notes that demand for small businesses is growing at a faster rate than the supply of businesses for sale. Mike Handelsman, BizBuySell.com general manager, said there are a few reasons for this outcome.
“Larger businesses with predictable future cash flows are still able to ask for premium valuations, especially in tough economic times like these,” he explained. “They are still in high demand. At the same time, with the rise in unemployment, many individuals who may have severance or savings to invest are looking to become entrepreneurs. So, overall demand for good businesses is very strong.”
Going against the national trend, markets in Chicago, Dallas-Fort Worth, Las Vegas, Minneapolis and New Orleans have seen a drop in business sales prices. BizBuySell attributes this to small business sellers in these markets lowering their asking prices and local business buyers finding it difficult to obtain credit.
More information about local and industry-specific business valuations is available online at www.bizbuysell.com.
About the Insight Reports:
The BizBuySell Insight Report is a nationally-recognized economic indicator that tracks the health of the U.S. small business economy. Each quarter, BizBuySell analyzes sales and listing prices of small businesses across the U.S., based on more than 50,000 businesses for sale and those recently sold. The BizBuySell Insight Reports focus on over 60 major U.S. markets and publish local, regional, state and national data for trending and analysis.
BizBuySell is the Internet's largest business for sale marketplace. Since 1996, BizBuySell has offered tools that make it easy for business owners and brokers to sell a business, and potential buyers to find the business of their dreams. BizBuySell currently has an inventory of approximately businesses - spanning 80 countries - for sale at any one time and receives more than monthly visits. The site also features an extensive franchise directory as well as an easy-to-use business valuation tool. Please visit www.bizbuysell.com for more information.
BizBuySell was founded in 1996 and in 2012 became a division of CoStar Group, Inc. (NASDAQ - CSGP) - commercial real estate's leading provider of information and analytic services. CoStar conducts expansive, ongoing research to produce and maintain the largest and most comprehensive database of commercial real estate information and offers a suite of online services enabling clients to analyze, interpret and gain unmatched insight on commercial property values, market conditions and current availabilities. For more information, visit www.costar.com.
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