Unfavorable Changes in Business Sale Prices for Sellers

Overall, the median sale price of businesses sold in the U.S. fell this past year according to reports from BizBuySell.  Internet based service categories as well as Electric, Gas, Water and Sanitation Services were the only categories with higher median sale prices in 2015.  The pricing shifts indicate a strengthening buyers market.  This aligns with recent reports and sentiment among transaction professionals.  The statistics of an aging population with a limited pool of buyers, may create an imbalance of supply and demand within the market.  As a result unprepared sellers may settle for lower sale prices, work longer or simply close up shop as opposed to transitioning their businesses.  Preparation will be essential for sellers, requiring thoughtful exit planning and working with professionals to optimize sale price.  M & A advisors have been proven to improve company valuations.  Click the figures below to view the full infographs from BizBuySell.

 

2018-01-05T16:09:56+00:00