August, 2011. Business Sales and Acquisition activities are up for the third quarter in a row.
The nation’s largest business-for-sale website has reported that sales of privately held businesses were up 8 percent for the quarter just ended as compared to the same period last year. This is the third successive quarter in which current results have bested year earlier numbers.
The information comes from BizBuySell.com and is based on transactions reported by participating business brokers. The average gross annual revenue of sold companies was $340,000. Average selling price of the businesses was $150,000.
There were a total of 1,198 businesses reported in the survey as changing hands. Interestingly, 45 percent of these were classified as service businesses. Retail and restaurants accounted for 44 percent, with manufacturing transactions at only 5 percent. The remaining 7 percent were classified as “other.”
An increase in small business sales is generally considered to be good for the economy, as small and medium sized businesses provide more than half of the private sector employment and gross domestic product. New owners of businesses are often eager to put their own stamp on the venture, investing in new product lines, employees, equipment and marketing efforts.
I agree with you about a dose of optimism. The economic downturn has been very hard on so many of us in California, but I think we are beginning to see the signs of recovery. This year, 2011, I am living in the balance of being realistic and staying positive! Thanks.