The online business-for-sale marketplace BizBuySell.com recently reported that its 2017 small business transactions “insights report” recorded the largest year-over-year growth rate since 2013. The report is based on the voluntary participation of around 5,000 business brokers. The report is recognized as a leading indicator of overall trends in the buying and selling of small businesses.
For several years after the 2008-2009 “Great Recession,” business-ownership sales volume remained low as small businesses struggled financially and capital for financing remained tight, according to the report. Beginning in 2013, as the economy recovered, closed (or completed) transactions have steadily increased, however, 2017 represented a significant boost.
9,919 | Number of closed transactions reported in 2017
7,842 | Number of closed transactions reported in 2016
BizBuySell.com surveyed over 5,000 business brokers to get their opinions about the small business transaction marketplace. When asked for the top reason for the increase in transactions, 28 percent of the brokers cited the improving small business environment, including strengthening revenue and profit numbers.
Brokers’ perception of business buyers and owners:
21% | Owners looking to sell
19% | Qualified buyers in the market
42% | Percentage of brokers who think the current market favors buyers
30% | Percentage of brokers who think the current market favors sellers
25% | Percentage of brokers who think the market as balanced
Quarterly tracking of completed (closed) transactions (2014-2017)
2017 small business transactions by location and by industry (sector)
Photo by Serge Melki via Flickr (CC by 2.o)