sales are strong & prices are going up · sales are strong & prices are going up number of...
TRANSCRIPT
BIZBUYSELL’S 2016 REPORT
WHY BUYING OR SELLINGA SMALL BUSINESSIS BECOMING A BIG DEAL
SALES ARE STRONG & PRICES ARE GOING UPNumber of Sold Businesses Are Going Up
Average Sale Price of Businesses Are Going Up
2013 2014 2015 2016
$180k $185k $199k $200k
2013 2014 2015 2016
7,8427,2227,4947,056
SOURCE: BizBuySell, Fourth Quarter 2016 Insight Report
RESTAURANTS, SERVICE & RETAIL ARE THE MOST POPULAR INDUSTRIES
Freight, Moving & Delivery $497,000
Gasoline Service Stations $437,500
Liquor Stores $365,000
Health, Medical & Dental $325,000
Auto Repair, Parts & Service $240,000
Bars & Taverns $199,000
Drycleaning & Laundry Services $170,000
Restaurants $160,000
Convenience Stores $125,000
Beauty Salons & Barber Shops $99,500
RETAIL
SERVICE
MANUFACTURING
INTERNET - 3.2%
CONSTRUCTION - 2.6%
WHOLESALE - 1.7%OTHER
51%36.3%
0.7%
4.5%
MEDIAN SALE PRICE BY INDUSTRY NUMBER OF REPORTED SALES BY INDUSTRY
SOURCE: BizBuySell, Fourth Quarter 2016 Insight Report
NEW YORK, LOS ANGELES & MIAMI METROSHAVE THE MOST ACTIVITY
Top States Where Businesses Are Bought & Sold
21% California14% Florida9% New York7% Texas
SOURCE: BizBuySell, Fourth Quarter 2016 Insight Report
WHAT TYPE OF PEOPLE ARE BUYING AND SELLING SMALL BUSINESSES
78%ARE MALE
77%
58% HAVE COLLEGE DEGREES
ARE OVER40 YEARS OF AGE
Small business buyers & sellers are
predominately Caucasian,
college-educated, married men,
40 - 50 years old. 47% EARN $100k+
SOURCE: BizBuySell, The Demographics of U.S. Small Business Buyers & Sellers, May 2016
WHERE MOST SMALL BUSINESS OWNERSGET THEIR FUNDING
ALL FIRMS
>$10M
$1M-$10M
$100K-10M
MICRO (<$100K)
52%52%42%
20%9%
53%58%
6%1%
59%45%
11%4%
52%39%
22%9%
44%41%
30%14%
SOURCE: 2015 Small Business Credit Survey, Federal Reserve Bank | 1. Select answer choices shown. Respondents could select multiple options. 2. “Online Lenders” are defined as nonbank alternative and marketplace lenders, including Lending Club, OnDeck, CAN Capital, and PayPay Working Capital
SMALL BANK
LARGE BANK
ONLINE LENDER
CREDIT UNION
2
CREDIT SOURCES APPLIED TO BY REVENUE SIZE OF FIRM (% OF
LOAN/LINE OF CREDIT APPLICANTS)
1
WHAT MOST SMALL BUSINESS OWNERS ARE OPTIMISTIC ABOUT
Small Business Optimism Index Increase 7.4 to 105.8Based on 10 survey indicators, seasonally adjusted, Jan. ‘00 - Dec. ’16
110
100
90
80
70‘00 ’03 ‘06 ’09 ‘12 ’15
Inde
x Valu
e (19
86=10
0)
73% of gain in optimism attributed to: - Expectation for real sales gains- Outlook for business conditions
SOURCE: NFIB Small Business Economic Trends, December 2016
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