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.
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.