2010 could be a good year to buy a small business
- January 13, 2010
In the market for a small business? The median asking price in Richmond is $249,500. That’s the fourth-quarter figure from BizBuySell.com, a San Francisco-based online company that tracks business-for-sale data. The quarter of a million figure is well above the $180,000 median sales price for the entire country and $36,500 more than the median price for a small business in Richmond for the fourth quarter of 2008.
Nationwide, business-for-sale transactions declined by 28 percent in 2009, according to BizBuySell.com. However, the company notes that a recovery that began in mid-year continued to gain momentum in the fourth quarter with service businesses and restaurants leading the way. “In the latter part of 2009 we started to see clear signs of recovery, and 2010 is now shaping up to be a much more productive year for selling and buying businesses,” Mike Handelsman, general manager of BizBuySell.com, said in a statement.
In the fourth quarter, businesses listed for sale in Richmond that were tracked by the company had a median revenue of $495,000 and a median cash flow of $100,000. Of three closed transactions analyzed during the quarter, businesses sold for a median sales price of $395,000, or 93 percent of the ask price. The company’s fourth-quarter data is based on 84 Richmond-area businesses listed for sale at BizBuySell.com. For all of 2009, the company looked at 13 closed transactions, with retail/restaurant and service businesses selling for a median sales price of $395,000.