Each quarter Transworld reviews various quarterly reports put out by Biz Buy Sell, the International Business Broker's Association, and PitchBook along with our own internal data to provide a comprehensive quarterly report for our clients and partners in Colorado. These reviews give us a chance to identify trends and highlights of import so we can best advise our clients in the long term. On the whole, small- to mid-market transactions are still a highly active sector of the M&A industry, however, given the slow down in the larger M&A market we expect the industry to slow down in 2018.
General U.S. Market Highlights:
The following are key metrics concerning the U.S. business sales market in quarter three:
- Time to sell dropped to 146 days down from the 168 days in ?Q2 2017, and a 14.6% drop from 2016?s Q3.
- Median revenue of a sold business grew to $507,865, which is an 11.2% increase from Q3 2016 and a 3.6% increase from last quarter ($490,000).
- The median cash flow numbers experienced a 6.9% year-over-year increase to $113,071 this year from $105,730 in the third quarter of 2016.
- The median asking price of a sold business increased 15.7% from Q3 2016 to $250,000 this quarter, however on the whole, while the median sale prices have still increased year-over-year, it has diminished the past two quarters. After hitting an all-time high in Q1 2017 at $237,000, median sale price fell to $225,000 in Q3 2017.
To read the full Q3 2017 report please click here or to discuss the state of the market and your business sale needs feel free to schedule a complimentary consultation today!
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 longtime 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.
