If you are a business owner who is watching the market and looking for the right moment to sell, then the Q4 IBBA report for 2015 has some good news for you.
IBBA (the International Business Brokers Association) released the Q4 Market Pulse Report in conjunction with M&A Source and the Pepperdine Private Capital Market Project. The report showed a strong market for “Main Street” businesses (those with values less than $2 million). These Main Street businesses sold for 91% of their asking price in the final quarter.
There are also more buyers entering the market, as evidenced by a record year at the Small Business Administration (SBA). SBA distributed around $23.6 billion in 2015.
Most of the buyers of small business listed for less than $500,000 were first-time buyers, so for those contemplating selling their small business – there is a new crop of business buyers out there looking for their entrepreneurial chance. Perhaps the time to make your business part of their future as entrepreneurs is now.
Moreover, market activity in the last quarter of 2015 was lead by those businesses in the service industry (for the Main Street sector), so those with a service-related business should consider listing their business now while their industry leads the charts.
The very active market in 2015 should continue in 2016, as many in the business market are projecting. This upward trend, however, can’t continue forever. If you are considering selling your small business, selling now while the market is healthy may be a far smarter bet than waiting to see what the future of the market might hold.
Have you thought about selling your business, but were waiting for the right time? Would you like to know what businesses in your industry are currently selling for? Please feel free to leave any questions or comments here and we would be happy to help.
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