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 United States based on over 50,000 businesses for sale and those recently sold. The BizBuySell Insight Reports focus on over 70 major U.S. markets and publish local, regional, state and national data for trending and analysis.
An expert on small business issues, BizBuySell General Manager Mike Handelsman discusses the trends revealed by the Insight Reports in various media outlets. Mike has been featured in many news publications regarding small business issues.
In reviewing this data, please be aware of the following:
The latest data has just been released for the Second Quarter of 2009. The data suggests that the business-for-sale market is suffering in the down economy.
According to the data, the number of closed transactions reported to BizBuySell.com in the Second Quarter 2009 dropped 50% as compared with the same time period in 2008 - from 2,098 transactions to 1,040.
In addition to fewer completed deals, BizBuySell.com notes a decline in the metrics that are used to value companies. Compared to the same quarter last year, both revenue multiples and cash flow multiples have declined.
Revenue multiples on reported closed transactions dropped from 0.69 to 0.68 year over year, representing a 2.5% decline. Similarly, cash flow multiples dropped from 2.82 to 2.59, representing a 8.0% decline. The revenue and cash flow multiples are calculated by dividing the selling price of the business by its reported annual revenue or cash flow.
For information about local data in your area, or questions regarding the BizBuySell Insight Reports, contact Frank Krolicki at fkrolicki@walkersands.com or by phone at 312-546-4127.
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