Buying businesses in Birmingham was a little more expensive in the second quarter
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Sellers are seeking higher prices for their businesses in Birmingham.
The median asking price for Birmingham businesses rose 22 percent in the second quarter, compared to the same period in the previous year.
The median asking price of businesses for sale in the Magic City was $274,500 in the second quarter, according to BizBuySell.com, an Internet-based business-for-sale marketplace. That’s up from the median asking price of $225,000 a year ago.
The data is based on 62 area listings on BizBuySell.com in the second quarter. These listed businesses had a median revenue of $428,099 and a median cash flow of $107,647.
Nationally, there were 2,029 small business transactions reported in the second quarter, up 11 percent over the same period in 2013 and the highest levels reported since before the recession hit.
The site said the continued growth can be linked to a variety of factors, most notably increased supply and demand, improving small business performance and increased capital availability.
“It has been an exciting year and a half for the small business transaction market, and so far, it has shown no signs of slowing down,” Bob House[5], general manager of BizBuySell.com, said. “To see brokers reporting this much activity is a great sign that we have left the Great Recession behind, and both buyers and sellers are confident they can close deals in today’s small business market.”
Antrenise Cole covers banking, finance, small business lending, venture capital, accounting and law for the Birmingham Business Journal. Click here to follow her on Twitter.[6]