BIZBUYSELL’S 2016 REPORT WHY BUYING OR SELLING A SMALL BUSINESS IS BECOMING A BIG DEAL SALES ARE STRONG & PRICES ARE GOING UP Number of Sold Businesses Are Going Up Average Sale Price of Businesses Are Going Up 2013 2014 2015 2016 $180k $185k $199k $200k 2013 2014 2015 2016 7,842 7,222 7,494 7,056 SOURCE: BizBuySell, Fourth Quarter 2016 Insight Report RESTAURANTS, SERVICE & RETAIL ARE THE MOST POPULAR INDUSTRIES Freight, Moving & Delivery $497,000 Gasoline Service Stations $437,500 Liquor Stores $365,000 Health, Medical & Dental $325,000 Auto Repair, Parts & Service $240,000 Bars & Taverns $199,000 Drycleaning & Laundry Services $170,000 Restaurants $160,000 Convenience Stores $125,000 Beauty Salons & Barber Shops $99,500 RETAIL SERVICE MANUFACTURING INTERNET - 3.2% CONSTRUCTION - 2.6% WHOLESALE - 1.7% OTHER 51% 36.3% 0.7% 4.5% MEDIAN SALE PRICE BY INDUSTRY NUMBER OF REPORTED SALES BY INDUSTRY SOURCE: BizBuySell, Fourth Quarter 2016 Insight Report NEW YORK, LOS ANGELES & MIAMI METROS HAVE THE MOST ACTIVITY Top States Where Businesses Are Bought & Sold 21% California 14% Florida 9% New York 7% Texas SOURCE: BizBuySell, Fourth Quarter 2016 Insight Report WHAT TYPE OF PEOPLE ARE BUYING AND SELLING SMALL BUSINESSES 78% ARE MALE 77% 58% HAVE COLLEGE DEGREES ARE OVER 40 YEARS OF AGE Small business buyers & sellers are predominately Caucasian, college-educated, married men, 40 - 50 years old. 47% EARN $100k + SOURCE: BizBuySell, The Demographics of U.S. Small Business Buyers & Sellers, May 2016 WHERE MOST SMALL BUSINESS OWNERS GET THEIR FUNDING ALL FIRMS >$10M $1M-$10M $100K-10M MICRO (<$100K) 52% 52% 42% 20% 9% 53% 58% 6% 1% 59% 45% 11% 4% 52% 39% 22% 9% 44% 41% 30% 14% SOURCE: 2015 Small Business Credit Survey, Federal Reserve Bank | 1. Select answer choices shown. Respondents could select multiple options. 2. “Online Lenders” are defined as nonbank alternative and marketplace lenders, including Lending Club, OnDeck, CAN Capital, and PayPay Working Capital SMALL BANK LARGE BANK ONLINE LENDER CREDIT UNION 2 CREDIT SOURCES APPLIED TO BY REVENUE SIZE OF FIRM (% OF LOAN/LINE OF CREDIT APPLICANTS) 1 WHAT MOST SMALL BUSINESS OWNERS ARE OPTIMISTIC ABOUT Small Business Optimism Index Increase 7.4 to 105.8 Based on 10 survey indicators, seasonally adjusted, Jan. ‘00 - Dec. ’16 110 100 90 80 70 ‘00 ’03 ‘06 ’09 ‘12 ’15 Index Value (1986=100) 73% of gain in optimism attributed to: - Expectation for real sales gains - Outlook for business conditions SOURCE: NFIB Small Business Economic Trends, December 2016 Visit us at www.bizbuysell.com. BizBuySell connects owners, buyers and brokers in the Internet’s largest business for sale marketplace. Buy a business or sell your existing business. Research your options or prepare for your exit. Learn the entire process with our free step-by-step guides. The Internet’s Largest Business for Sale Marketplace