Business Sales are Booming

By SCORE, Special for USDR

SCORE, – www.score.org – the nation’s largest network of volunteer, expert business mentors, has gathered statistics on buying and selling small businesses that show a solid economy for both business buyers and sellers.

Sales of small businesses have been stable since 2013, following a major increase from 2012.

  • In 2015, 7,222 businesses were sold.
  • In 2014, 7,494 businesses were sold.
  • In 2013, 7,056 businesses were sold.
  • In 2012, 4,730 businesses were sold.

Small business prices are rising.

  • In 2015, the average asking price was $225,000 with a sales price of $199,000.
  • In 2012, the median asking price was $187,000 with a sales price of $164,000.
  • The most expensive businesses are Internet B2B companies, which sell for $364,400 on average.
  • The least expensive businesses are beauty salons and barber shops, which sell for $75,000 on average.

Tips on buying a small business:

  • Invest less than 15% of your net worth.
  • Keep at least 10% of liquid assets free for future business needs.
  • Expect to pay 20%-40% of business costs out-of-pocket.

Tips on selling a small business:

  • Start planning 2-5 years in advance, and research the due diligence process.
  • Consider seller financing, which may increase your price by more than 15%.

Why businesses don’t sell:

  • 58% cite unrealistic expectations, including an inflated sale price, lack of owner preparation and underestimated sale time.
  • 31% cite bad financial health of the business.

Download this month’s SCORE infographic for more data and suggestions on buying or selling a business. Remember to consult an experienced, trusted SCORE mentor for help with your individual situation.

About  SCORE
Since 1964, SCORE has helped more than 10 million aspiring entrepreneurs. Each year, SCORE’s 10,000+ volunteer business experts provide free and low-cost small business mentoring, workshops and education to 500,000+ clients in more than 300 chapters. In 2015, SCORE volunteers provided 1.2+ million hours to help create over 45,000 jobs and 55,000 small  businesses.

For more information about starting or operating a small business, call 1-800-634-0245 for the SCORE chapter nearest you. Visit SCORE at www.score.org. Connect with SCORE at www.facebook.com/SCOREMentors and  www.twitter.com/SCOREMentors.

SOURCE SCORE

All opinions expressed on USDR are those of the author and not necessarily those of US Daily Review.
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