Friday, October 9th
If you want to buy a business in Orlando, the current asking price is about $195,000.
One year ago, at the end of third-quarter 2008, the median asking price for businesses in Orlando was $199,000.
The third-quarter 2009 data is based on 845 Orlando-area businesses listed at BizBuySell.com. It includes listings from local business brokers, as well as “for sale by owner” listings.
Looking ahead, the fourth quarter and first-quarter 2010 are forecast to show robust growth in the business-for-sale marketplace.
Businesses in the Orlando area listed in third-quarter 2009 had a median revenue of $330,000, down from $337,000 for the same period last year.
Nationally, the business-for-sale marketplace seems to have hit bottom and is turning around. BizBuySell saw a 24 percent drop in closed business-for-sale transactions. That’s an improvement from last quarter when closed transactions declined 50 percent year over year.
The BizBuySell data suggests sellers are dropping their prices, leading to greater alignment between sellers and buyers. The median price for closed transactions, for example, declined to $149,000 from $189,500 year over year. Similar downward trends were being seen in asking prices, sale-to-ask ratios, revenue multiples and cash flow multiples.
Looking ahead, the fourth quarter and first-quarter 2010 are forecast to show robust growth in the business-for-sale marketplace. Factors behind that optimism: Easing credit, recovering business fundamentals and a change in the Small Business Administration lending criteria with respect to goodwill.