Sales of Richmond businesses fetch better prices than a year ago
- October 18, 2010
In the market to buy a business in Richmond? Then be prepared to pay a quarter of a million dollars. That was the current median asking price of businesses for sale at the end of the third quarter, according to BizBuySell.com, an Internet company that lists and tracks company sales.
The $250,000 figure was based on 82 Richmond-area businesses listed with BizBuySell. It was up $30,000 compared to the median asking price of $220,000 for the third quarter of 2009. The listings included in the survey included ones from business brokers as well as “for sale by owner” listings.
The Richmond businesses had a median revenue of $482,296, up from $414,241 for the same time last year.
Nationally, BizBuySell reports a flat market. Earlier signs of recovery stalled out in the second half of the year, it said, with the biggest problem a shortage of credit available for small business acquisitions. In fact at the national level, the number of small business transactions that closed in the third quarter, 1,117, was the same number for the same period a year ago.
Nationally, the median sale price continued to fall to $140,000 for the third quarter, down 6 percent versus a year ago. This is the lowest level since BizBuySell began reporting data in January 2007. It has declined 30 percent from a high of $200,000 in the first and second quarters of 2008.
Brokers told BizBuySell they don’t expect transaction levels to return to pre-recession volumes for at least another 12 to 18 months.