Small Business Finance News
Business Sale Transactions Improve By 3 Percent In 2010
Written by Jenna Weiner
Positive economic signs yield a slight increase in the number of sold businesses in 2010.
As the economy began to show signs of improvement in 2010, the number of closed business-for-sale transactions increased - welcome news for entrepreneurs who are hoping to go on the market in the new year.
According to BizBuySell's Insight Report, the number of businesses sold last year increased by 3 percent. The report also predicts that this upward trend will continue into 2011 as credit eases and the number of buyers increase.
"Spurred on by a strong showing in the fourth quarter, the business-for-sale market showed some promising signs of recovery heading into the New Year," said Mike Handelsman, group general manager for BizBuySell.com and BizQuest.com. "In 2010, we saw more deals getting done. One of the key drivers for that growth was that business sellers were more realistic about their business valuations."
However, the median closed-sale transaction price dropped 6.3 percent year-over-year, down from $160,000 in 2009 to $150,000 in 2010.
The report was based on data from 4,568 transactions listed on its site. Currently, BizBuySell lists more than 45,000 businesses for sale.
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