Internet business broker BizBuySell.com has released its fourth quarter data based on 227 Puget Sound-area transactions recorded in the fourth quarter. Among the results:
• The current median asking price of businesses for sale is $183,000. One year ago, at the end of Q4 2012, the median asking price for businesses in the area was $200,000.
• The Q4 2013 listed businesses in the area had a median revenue of $403,200, up from $365,000 at this same in 2012.
• The median cash flow, meaning the money that comes out of the business over the course of a year,was $89,814, versus median cash flows of $84,000 last year.
• According to BizBuySell.com, business owners in the area will typically ask for, on average, a revenue multiple of .84 (changed from 1.02 for Q4 2012) and a cash flow multiple of 2.93 (vs. 3.28).
BizBuySell noted in a statement that the metrics are based on businesses that are listed by local business brokers, as well as "for sale by owner” listings that have been listed by the business owner without the assistance of a business broker.
The company characterized 2013 as “a great stepping stone to what should be a healthy business transaction market for some time to come. The latent supply and demand created by the recession finally spilled onto the market and should continue to provide a strong buying and selling environment in 2014.”
In a survey of business brokers, the company reported that 76 percent “expected even more Baby Boomers to sell their business in 2014 than did in 2013. If the economic recovery continues as anticipated, access to loans and personal wealth should both improve meaning that prospective buyers should be there to absorb the growing supply.”