Your Business Broker

 BizBuySell.com has released its latest economic data for the Fourth Quarter of 2010. The company’s data, which tracks trends in the business-for-sale marketplace, suggests that the business-for-sale market is seeing moderate, but steady improvement. The total number of closed transactions reported by business brokers in 2010 increased 3% over 2009 to 4,568. This number was largely spurred by a strong fourth quarter.

This sales volume increase was, however, accompanied by a decrease in business valuations. Sellers seem to have become more realistic about the value of their businesses in 2010, dropping asking prices to get deals done. The median closed-transaction sale price for 2010 declined 6.3%, from $160,000 in 2009 to $150,000 in 2010. Key valuation metrics also fell slightly with the average revenue multiple down 2.1% and the average cash flow multiple down 0.6%.

The Fourth Quarter of 2010 was a bright conclusion to the year as total transactions were up 11% compared to the Fourth Quarter of 2009 – seemingly spurred by seller uncertainty regarding tax code changes. With the lower capital gains tax rates potentially expiring at the end of the year, many sellers looked to close deals while their after-tax proceeds would be maximized. With financing sources still in short supply, the growing acquisition activity in 2010 skewed to smaller business-for-sale transactions and non-manufacturing sectors.

The overall increase in closed transactions follows a year-long trend reflecting a slow, but steady economic recovery. BizBuySell.com projects that this trend will slowly accelerate in 2011 citing improving industry drivers, including increased supply and demand. As the economy improves, business owners who hesitated to sell in the midst of a recession should see their business performance strengthen and be more willing to sell. Also, an above average number of small businesses should come to the sale market as U.S. baby boomers start to retire. Simultaneously, national business brokers are reporting a growing number of buyers – many of whom are laid-off corporate workers looking to the opportunity of entrepreneurship – seeking to purchase a business while prices remain relatively low. Finally, recent federal legislation that provides community banks with capital earmarked for small business lending should encourage banks to ease lending restrictions and provide more of these buyers with necessary capital.

The process of buying or selling a business requires dedication and the attention of a professional with knowledge of the complete flow of a business transaction, as well as a team in place to accomplish every aspect of the transfer. Marketing and facilitating a business transfer is a full-time job! You deserve someone who will work as hard as you do. As a qualified and experienced broker I save business owners and prospective buyers money by helping them avoid costly mistakes, effectively marketing the appeal of the business, and maximizing exposure to serious, qualified buyers–all with complete confidentiality.

SELLERS BENEFIT

A business owner will benefit from working with an experienced Business Broker, because I have the training, tools and experience to deliver qualified buyers with a sincere interest in buying a business.

BUYERS BENEFIT

Someone looking to buy a business will greatly benefit from consulting with me because I understand that buyers buy “cash flow” or economic performance. Therefore, I focus on offering profitable businesses for sale.