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Small Businesses Are Selling for Highest Prices on Record

San Francisco, CA - BizBuySell.com, the Internet's largest business-for-sale marketplace, reported continued strong business-for-sale activity in the first quarter of 2018, with record-breaking sales prices and transactions highlighting a positive start to the new year. The full results are included in BizBuySell's Q1 2018 Insight Report, which aggregates statistics from business-for-sale transactions reported by participating business brokers nationwide.

Small businesses sold for a median sale price of $245,000 in the first quarter of 2018, the highest sale price since BizBuySell started tracking the data in 2007 and a 3.4 percent increase from a year ago. The median asking price of sold businesses also hit a record high at $262,000, a 4.8 percent increase from 2017. Small business owners should take note of the record prices. For those considering a sale, now appears to be a great time to at least contact a broker and ask how your business stacks up against the overall market.

Common Financial Mistakes Business Owners Make Before a Sale -- and How to Fix Them

They say there is no better time than the present -- and for small business owners looking to exit, now is an especially good time to enter the for-sale market. Increasing consumer demand, coupled with lower taxes, helped the U.S. economy grow 4.2 percent in the second quarter, suggesting further gains for the remainder of the year. In addition, BizBuySell's latest Insights report found a total of 5,383 businesses have sold in the first two quarters of 2018, putting this year on course to break 2017's record-setting number of transactions.

For small business owners hoping to cash out, however, issues with their financials can quickly become a roadblock to a successful sale. A disorganized record book can turn away potential buyers, who expect complete transparency in order to know exactly what they are getting into.

2018 Small Business Transactions Hit Record High, as Boomers Fuel Market

For the third year in a row, a record number of small businesses changed hands, according to the latest BizBuySell Insight Report, a nationally-recognized economic indicator which aggregates statistics from business-for-sale transactions reported by participating business brokers nationwide. A total of 10,312 businesses were reported sold in 2018, the most since BizBuySell start collecting such data in 2007. The year's brisk activity of businesses being sold represents a four percent increase over the previous record of 9,919 in 2017 and a 31 percent jump from 2016's then high of 7,842.

In addition to the reported sale data, BizBuySell also separately surveyed business brokers and small business owners about the market. Brokers said they saw similar increases, with 65 percent of respondents reporting that their transaction activity increased in 2018 while another 21 percent said it remained similar to 2017's active level.