Want to buy a business? Check the Internet
WASHINGTON - If you’re in the market for a $1.5 million D.C. supermarket, you can currently snag one on San Francisco-based bizbuysell.com. You can also find a $145,000 police supply and equipment store, a $500,000 Subway and a $550,000 deli in a “great location across from a metro station.”
Those are just a few of the 1,028 businesses the Web site is listing for sale in the metro area.
According to the company, if you’re looking to buy a business in the D.C. region, you’ll be asked to shell out a median of $250,000. That runs on par with the national median asking price.
D.C. businesses on the site list a median revenue of $416,000 and a median cash flow — the money that comes out of the business annually — of $100,000.
“In terms of activity, we’re seeing an increasing number of businesses for sale in the area,” BizBuySell general manager Mike Handelsman said. “As many baby boomers who own businesses move closer to retirement, we should see an increasing number of businesses for sale. That will likely put some downward pressure on pricing.”
Currently, 391 of the D.C.-area businesses listed on the site are in the retail industry, 260 are restaurants and 312 are service companies. Only 26 are in the manufacturing industry, and 39 are listed as “other.”
Potential buyers and sellers may use the Web site’s free valuation tool to estimate what a company is worth based on its revenue and cash flow.
Small-business buyers should be wary of a company’s hidden debts and should consult a lawyer and financial analysts during the transaction, said Natalie Cofield, director of industry and business development for the Washington D.C. Economic Partnership.
“If a business is selling, you should find out why,” Cofield said. “It’s very important for the purchaser to do due diligence. Once you purchase a company, you’re liable for their debts, and if you don’t do a good job with that, it will significantly impact you or your company.”
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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