If you were one of the many people to sell a business in 2014, you were in luck. After an already active 2013, 2014 small business transactions increased again as the business-for-sale market continues its impressive run of growth.
According to industry analysts, small business transactions reached record levels in 2014 as brokers reported the highest number of businesses changing hands since tracking data has been widely used. A total of 7.494 closed transactions were reported in 2014, a jump of nearly 500 from 2013, which was also the previous record. On average, 2013 and 2014 transaction totals are up 55% over the recession and recovery period from 2010 through 2012.
Another important area that is driving transactions is the improvement of the small business environment. Small businesses are performing at a higher level, specifically in regard to small business financial performance in Q4 of 2014, which was the third consecutive quarter of increased median revenue. The improved financial environment combined with the availability of capital has allowed sellers to ask for and receive more money for their business.
2015 does appear to be shaping up to be a good time to sell a business. It’s a good economic indicator that the fourth quarter ended the year on such a high note. The improving financials are a particularly strong positive for the business-for-sale marker and small business overall. As the economy continues to grow, small businesses are likely to keep improving, and more sellers will be confident that they can successfully exit their businesses.
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