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In the business of buying and selling businesses: median price down, number of sales up in Q1

Post by C.R. Roberts / The News Tribune on April 17, 2012 at 6:45 am |
April 16, 2012 5:46 pm

The median asking price for a business in the Seattle area dipped from $213,000 in in the first quarter of 2011 to $180,000 at the end of March, an online business broker reported this week.

In its quarterly report, also said:

• Among businesses listed for sale in the area, the first quarter 2012 median revenue was $322,489, down from $401,818 a year before.

• Business owners in the Seattle area typically ask for an average revenue multiple of 0.89 (up from 0.69 a year before) and a cash flow multiple of 3.05 (up slightly from 3.03 year over-year).

• Nationwide, reported an increase of nearly 4 percent in the number of businesses sold in the first quarter compared to the same period in 2011.

• Participating business brokers reported 1,729 closed transactions, a figure up 3.9 percent over the year. The 2012 number was the largest since the fourth quarter of 2008.

• Additionally, according to a company release, the latest figures mark the third consecutive reporting period reporting a gain in sales volume.

According to the release, “A main driver of the increase in transactions is that business owners were willing to accept lower prices than in previous quarters.”

Additionally, “With better financing available for buyers and a larger supply of businesses ready to hit the market, we may finally have the right conditions for a more significant bump in the number of closed transactions.”

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