More Information Suggesting It Is Time to Sell Business Orange County
Several surveys indicated that Private Equity activity is slow but the lower middle market and main street is picking up steam, particularly to sell business in Orange County.
Overall small-business performance has continued to improve. According to a recent study, median revenue jumped to $420,000 in the third quarter of 2013 from $385,327 in the same period in 2012, showing an 8.9 percent increase. Cash flow increased to $98,034 from $93,000 in the second quarter of 2012–a solid 5.4 percent quarter-over-quarter and a 3.4 percent year-over-year from $94,880 in the third quarter of 2012.
Expectations of sellers are growing also. Asking prices from business on the market has increased: The median asking price for businesses sold in the third quarter bumped up 2.1 percent to $199,000 and the median sale price rose 2.9 percent from Q2 to $180,000.
From our perspective, we are seeing sellers warm to the idea of putting their business on the market due to the performance increases they are experiencing. Clients who wanted to retire but felt like they missed the boat are absolutely seeing their businesses come back to the point where feel comfortable in selling.