Each quarter Transworld Denver reviews various reports put out by Biz Buy Sell, the International Business Broker's Association, and PitchBook along with our own internal findings stemming from transactions and trends. We compile all of this information to keep us in tune with the M&A industry and the economy as a whole. These reveiws also give us the opportunity to share some market highlights with our clients and partners! In the second quarter of 2017, we found that?small business transactions, in our small to mid market sector, are still hitting record numbers and surpassing the previous year?s transaction level. Q2 2017 experienced a total of 2,534 closed transactions, which was a 31% increase from last year at this time.
General U.S. Market Highlights: The following are key metrics concerning the U.S. business sales market in quarter two of 2017:
- Time to sell dropped to 168 days, depicting a 5.6% decline year-over-year.
- Median revenue of sold businesses grew 11% from $441,331 (Q2 2016) to $490,000 (Q2 2017), but experienced a slight decrease from the first quarter of 2017 ($518,159).
- The median cash flow numbers experienced a 10.5% year-over-year increase to $116,000 from $105,000.
- Median sale prices continued to increase in the second quarter from $199,000 in Q2 2016 to $229,000 in Q2 2017.
- Closed transactions also exhibited a 12.6% increase in median asking price hitting $250,000.
- The average sale-to-asking price ratio was 92%, indicating a well-balanced market for buyers and sellers and staying essentially the same since the close of 2016.
- The market is still slightly favoring sellers.
To read the full Q2 2017 report please click here or to discuss the state of the market and your business sale needs, schedule a consultation today!
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Rachael Holstein joined the Transworld Team in 2016 as Marketing Coordinator. Her working experience has been largely focused on Business Development and Marketing in the finance, architecture, property management, and information technology industries. A long time resident of Cleveland, Ohio, she attained her Undergrad from John Carroll University and a Master's Degree in Global Interactions from Cleveland State University. She relocated to Denver in 2013 for a change of scenery and a bit of adventure.