Small Business Transactions on the Decline
July 7, 2009 by Stephen Kersey
Filed under Business
According to BizBuySell, the number of small businesses being sold declined during the second quarter of 2009. BizBuySell, which is the largest online marketplace for purchasing or selling a small business, also says that valuations are down as well over the same time period.
Image: BizBuySell.com
The culprit? BizBuySell believes that the current economic woes are negatively affecting this field.
Said the GM of BizBuySell, Mike Handelsman: “These numbers are not surprising as the economy continues to deter the consummation of business transactions at all levels. There is no doubt that a large number of business transactions are not being closed simply due to the lack of available buyer capital and bank financing. While there are more potential buyers in the market due to high unemployment levels, they don’t have the capital or the risk-profile they’ve had during better times. To make matters worse, banks just aren’t willing to back business purchase transactions to the same level that they have in the past.”
According to their second quarter report, the year-over-year decline in completed transaction got cut in half. BizBuySell also reported a 20% decrease in the median sales prices of completed transactions.
