More Sacramento businesses are for sale, but prices are down

Posted on by Listify Me

The Sacramento region saw an uptick in the number of small businesses for sale in the second quarter, but prices remained well below levels seen before the crash, according to an online marketplace for business sellers and buyers.







The Sacramento region saw an uptick in the number of small businesses for sale in the second quarter, but prices remained well below levels seen before the crash, according to an online marketplace for business sellers and buyers.

San Francisco-based BizBuySell.com said 135 businesses were listed for sale in the region, up from 114 the previous quarter and 131 in the second quarter of 2011.

The number of businesses for sale has remained largely flat overall since the recession, however. The peak over the last five years was 243 in the second quarter of 2008.

Other measures showed a similar trend:

  • The median revenue of businesses listed for sale was $400,000, little changed from previous quarters.
  • The median asking price was $220,000, down slightly from the previous quarter and year-ago period.
  • The average asking price as a multiple of cash flow and revenue, at 2.76 and 0.64 respectively, was down substantially from figures in the second quarter of 2011.

The local figures are based on businesses listed for sale. Nationwide, a tally of businesses actually sold declined 1.6 percent — to 1,603 — in the second quarter from the same period last year, according to BizBuySell.com.

Unlike the Sacramento market, however, the nation overall has seen a slow but steady recovery in small-business sales since mid-2009, BizBuySell.com group general manager Mike Handelsman said in a news release.

“While we don’t like to see a drop in reported small business transactions, our analysis suggests that this quarter’s decline is a small hiccup in an otherwise consistent path to recovery,” Handelsman said.

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