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Small Businesses are Big Sellers

 
 

Brian Bandell
South Florida Business Journal
January 4, 2008

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Businesses brokers told BizBuySell that they closed 69 deals to sell South Florida companies through the Web site in the fourth quarter.

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Most of these were small businesses, and the median sales price was $180,000, which represented 91 percent of the median asking price by the sellers. The companies that were sold had $450,000 in median revenue.

The biggest South Florida deal reported to BizBuySell was the $10 million purchase of a caviar-producing operation in Miami that had nearly $2.3 million in revenue. The Web site wouldn't disclose the name.

In other deals:

A Broward County manufacturer of aluminum shade structures sold for $1.6 million.
A lumber and woodworking company in Miami sold for $1.6 million.
An insurance agency in Miami sold for $1 million.
A Miami sign company sold for $950,000.
There are plenty of deals out there to be made. BizBuySell said 2,095 businesses were listed for sale in South Florida. They had a median asking price of $300,000 and median revenue of $470,000.

BizBuySell GM Mike Handelsman said revenue multiples for business valuations for South Florida businesses are declining, even as asking prices are flat.

"It suggests that it's getting tougher to sell a business in the area," he said. "This is something we expect to happen as retiring baby boomers flood the market with businesses for sale and drive prices down in the years to come. It's a buyer's market for aspiring entrepreneurs."

Copyright © 2008. South Florida Business Journal.