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Should I Sell My Business? Market Says Yes!

Posted by Tom Hall in Articles

 More people than ever are starting businesses, but it shows that many of those people are also contemplating building a business for the purpose of selling it. This is excellent news for online business buyers and sellers as it puts together a tremendous amount of opportunity for someone to step in and take over a company that has already been built from the ground up. This makes it easy to exclaim “I want to sell my business!” and find the right buyer.

Research Shows Small Business Sales Set to Continue Growing- Could Be Time to Yell “I Want to Sell My Business!” 

A 2017 annual inside report found that nearly 10,000 closed transactions were reported by brokers in 2017. That was nearly a 27% increase from the 7,800 or so small business sales that occurred in 2016. Since 2013, this represented the biggest year over year growth as small business sales and shows the significant potential for years coming.

Selling an internet business may be one of the hottest opportunities in coming years, especially if you’re interested in how to sell websites. For those who sell websites, turning over the business can lead to a big windfall for the former owner.

Record Number of Small Businesses Sold In 2017

Stronger financial numbers are one of the primary motivators behind the record number of sales. The median revenue of a sold business increased by nearly 6% in 2017 when compared with 2016 numbers. Furthermore, median cash flow jumped by nearly 7% year over year.

Healthier businesses put together a better offering for prospective buyers. This lures sellers into the market because of increased demand. Stronger financials and demand means that online business sellers can ask for and receive more for their business.

Asking prices for small business sales increased by 11% in 2017. The median number for asking prices was $250,000 and associated sale prices also experienced an increase of 14%. The booming U.S. housing market is similar to the rise in the business for sale market despite the fact that there are a few differences between the two. A lack of inventory is a prominent problem in the housing market, for example; however, business buyers aren’t deterred by any rising prices since this can reflect additional value.

The supply of businesses is also increasing, meaning positive momentum forward. The respondents who participated in the study indicated that the increase in their interests had to do with profit numbers and boosted revenue. The second most common reason was the increasing number of owners who were looking to sell their company followed by an increasing number of buyers.

The business for sale market is surging due to a different boom particularly as it relates to baby boomers. The great recession changed the exit plans of baby boomer business owners significantly. As consumer spending slowed and the economy dropped, the values of small businesses decreased significantly. However, those small business owners who survived the economic downturn are now looking for their exit ticket. Retirement seeking baby boomers are putting their businesses up for sale and in order to get access to retirement and receive maximum value for their business.

When you sit down to ask your broker “Should I sell my business?” you need to walk through all the pros and cons of getting help to do so. A business broker can help you with selling ecommerce websites, an internet business valuation, how to sell your online business, and selling a tech company.