Improving economy leads to higher median valuation for businesses and the third year-over-year quarterly increase of businesses sold in a row.
The Wall Street Journal published an article this week titled Finally, a Good Time to Sell the Business. In it, they provide a case study, which is becoming a familiar story for small businesses around the country. Many small businesses are now able to show a steady increase of revenue and 3-year track record of success.
While small businesses owners were recovering from the economic downturn, potential buyers were saving capital and hesitant to take on new ventures. However, an improved economy has led buyers and sellers back into the marketplace with improved results.
Buying and Selling a Business in Nashville
In Nashville, and across the mid-South, we have seen this same story unfold as those who want to buy a business look to put their capital to use, and those who want to sell their business can now show a positive trend on the bottom line. Due to the rapid economic growth in the Nashville and middle Tennessee market in particular, many investors are looking to this area for their next business purchase. The New York Times deemed Nashville the next “it” city and Forbes ranked Nashville as the 2nd best big city in the nation for jobs in 2013.
All of these factors lead to one conclusion that the WSJ succinctly stated in their title, and we will paraphrase: it might finally be a good time to sell your business. Contact us to for a free consultation and find out what your company is truly worth.
National Business Sales Trends
Here are a few interesting facts as reported by the Wall Street Journal:
- BizEquity.com, an online valuation provider for small businesses, said the median valuation for businesses using the site rose to $1.3 million in the third quarter from $860,000 during the same period in 2012.
- There were 1,685 small businesses sold between July and September, up from 1,189 during the same period in 2012, according to BizBuySell.com, an online small-business marketplace. It was the third year-over-year quarterly increase in a row, the online marketplace found.
- The SBA backed 12,976 so-called 7(a) loans totaling $5.3 billion in the third quarter, up from 11,442 loans totaling $4.3 billion a year earlier, according to the SBA. These loans can be used to assist in the acquisition of an existing business as well as to establish a new business or expand an existing one, among other uses.
About Alliant Capital Advisors
At Alliant Capital Advisors, our only business is selling your business…confidentially. Located in Nashville, TN Alliant Capital Advisors, LLC is the largest full-service intermediary firm in four mid-south states, offering exit strategies to privately held business owners. From Main Street sales and mid-market transactions, to high-level mergers and acquisitions, Alliant employs decades of collective experience in corporate practice and as brokers, and we observe the highest professional standards in our industry.
If personal and professional integrity are our foundation, then the cornerstone of our service is a highly disciplined process which guides, guards and serves our clients like none other. Confidentiality is our first and constant priority, as our brokers guide clients through valuation, marketing, screening, buyer qualification and education, negotiation and closing. Unlike many other intermediary firms, Alliant’s business model is strictly “pay for performance”. We only receive a Success Fee when we close the sale.
Whether you are interested in buying or selling a business in Nashville, we invite you to contact us for a free and confidential consultation and valuation.