According to BizBuySell.com, more small businesses were sold last year than at any point since 2007, when the business-for-sale marketplace started keeping track of those transactions.
Sales were up 6 percent in 2014 compared to 2013, which was also a strong year. The number of transactions for 2013 and 2014 are about 55 percent higher than the totals from 2010 to 2012.
The median sales price in 2014 was $185,000, up from $180,000 in 2013. The purchased businesses were also offering stronger performances. The median revenue was $417,562 last year compared to $405,905 in 2013.
“It was great to see the transaction surge from 2013 carry over and even swell in 2014,” said Bob House, the group GM of BizBuySell.com and BizQuest.com. “Small businesses continue to grow healthier, giving sellers confidence that they can receive a good exit price and buyers optimism that they are receiving a sustainable business. The result is a market with many successful transactions for both sides.”
So what’s driving the increase in deals? The retirement of Baby Boomers is one factor. Nearly 80 percent of surveyed business brokers said that Boomers accounted for more than 25 percent of their sellers. A healthier climate for small businesses and a growing population of qualified buyers also helped.