BizBuySell.com, the Internet’s largest business-for-sale marketplace, reported today a record number of businesses changing hands in the second quarter of 2017. The full results are included in BizBuySell’s Q2 2017 Insight Report, which aggregates statistics from business-for-sale transactions reported by participating business brokers nationwide.

A total of 2,534 closed transactions were reported in the second quarter of 2017, a 31 percent increase from this time last year. This brings the year-to-date total to 4,902 closed transactions. If this pace holds up, 2017 will easily surpass 2016, when BizBuySell reported a then record 3,775 transactions in the first half of the year.

  • Median asking price of businesses for sale in Phoenix in Q2 of 2017 was  $200,000, compared with $179,000 Q2 of 2016.
  • Businesses listed in Phoenix in Q2 of 2017 had a median revenue of $383,943 up from $348,000 at this same time last year in Q2 of 2016.
  • Median cash flow for Phoenix businesses is $95,500 vs the median cash flow of $83,000 in Q2 2016.

Businesses sold in Q2 grossed a median revenue of $490,000, an 11 percent increase from $441,331 in the second quarter of 2016. Median cash flow also increased 10.5 percent year-over-year to $116,000 from $105,000. Both figures, however, mark a slight fall from Q1 2017 when median revenue and median cash flow hit record levels at $518,159 and $117,275, respectively. At the same time, the average multiple of cash flow increased 5.1 percent year-over-year to 2.34, while the average multiple of revenue remained steady at .62.

“Our recent conversations with brokers and previous research shows both buyers and sellers are confident in today’s business-for-sale environment,” said Bob House, president of BizBuySell.com and BizQuest.com. “This streak of record-number transactions confirms this sentiment and suggests many are capitalizing on today’s hot market.”

Higher Sales Prices and Fewer Days on Market Benefits Seller’s Market

In addition to more transactions taking place, it appears the sellers of those businesses are also benefiting from today’s market, which shows increasing sale prices and faster deals.

Improving financials continue to allow sellers to demand more for their businesses. The median sale price in the second quarter increased from $199,000 in Q2 2016 to $229,000. At the same time, the median asking price for closed deals increased 12.6 percent to $250,000. While the average sale to asking price ratio remained essentially flat at 0.92, this strong number indicates buyer and seller perceptions remain in line.