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2019 Report and 2020 Outlook by BizBuySell

Boomers Selling Businesses Will Present Opportunities Into the Future

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Leading business-for-sale marketplace, BizBuySell, reports strong sales of businesses nationwide. In their own words, their Insights Report ...

"... touches on several compelling demographic trends, including the Baby Boomer's growing likelihood of selling their businesses as they age and seek retirement, as well as the causes of current market conditions."

 

Here is an excerpt that sums up the balance in the market.  However, one can read into this passage that a potential imbalance may be looming.

"What is certain is that 2019 small business financial performance thrived. The median revenue and cash flow of businesses sold in 2019 reached all-time highs, up seven percent and two percent respectively. At the same time, sale prices remained mostly flat, which would seem to favor a buyers' market. This is supported by the 6 point increase in 2019 buyer confidence rising while owner confidence has dipped. However, taking a deeper look, the deals are more balanced than they appear. Sellers are sacrificing value to avoid an uncertain future - and at prices much higher than past years – while buyers take on increased value and risk."

On a local level, Michigan's largest market was mentioned as one of the stronger markets in 2019 for business sales.

"Richmond, VA saw the biggest increase in activity, with 53 percent more businesses changing hands. Other cities that experienced a notable increase in 2019 transactions include Baltimore (up 44 percent), Detroit and San Antonio (up 25 percent), Dallas (up 24 percent) and Houston (up 23 percent)."