After multiple quarters of declining business-for-sale transactions, the new data suggests that the state of the small business economy is finally beginning to improve.

"After many bleak months for the small business-for-sale economy, the market seems to have hit bottom and is fortunately now beginning to turn around," says Mike Handelsman, General Manager of BizBuySell.com.

The data from BizBuySell.com shows a 24% year-over-year drop in closed small business transactions. That may sound like bad news, but it's actually good news compared to where that statistic stood at the end of Second Quarter 2009.

At that time, BizBuySell.com had reported a dramatic 50% decline in closed business-for-sale transactions when compared to the same time period in 2008. In this respect, a 24% decline is a dramatic improvement in the business-for-sale marketplace, suggesting that the market hit bottom sometime around July 2009.

BizBuySell.com is now bullish on the business-for-sale market.

"As credit eases, business fundamentals recover and SBA lending criteria change with respect to goodwill, we are optimistic that the fourth quarter of this year and the first quarter of 2010 will show increased signs of recovery and growth," noted Handelsman.

Closed Transactions Increase as Pricing Drops

BizBuySell.com's third quarter data suggests that business sellers are increasingly willing to sell for less, thus allowing more deals to close. For example, the median sale price for closed transactions fell to $149,000 from $189,500 year-over-year, a 21.4% decline in price. The implication is that sellers had previously been reluctant to drop their prices. With asking prices becoming more realistic and access to credit easing to some extent, buyers are more active.

"These year-over-year price declines are dramatic, and suggest there are good deals out there for potential business buyers," says Handelsman. "With unemployment at record high levels, and SBA lending loosening beginning in Q4, this decrease in pricing and valuation numbers has made the prospect of purchasing a business much more achievable to buyers."

BizBuySell.com is the Internet's largest and most heavily trafficked business for sale marketplace. For more information on the BizBuySell.com Insight Report, visit http://www.bizbuysell.com/news/media_insight.html.

If you would like to see local business valuation trends for your area, visit Local Business Valuation Data Q3 2009.