1st Quarter IBBA Market Pulse Survey Results Explained

The results are in, but what do they mean for small business owners in the Triangle? Here’s a business broker’s breakdown the highlights of the first quarter 2019 IBBA, M&A Source, & Pepperdine Market Pulse Survey results…

Here’s the full survey

The Business Broker’s Summary:

  • It still takes about as long as it takes to have a baby to sell a business. The average time to close is 8.8 months, with smaller businesses closing in about 8 months… (Page 5)
  • Most advisors agree this is a seller’s market; there are more buyers than sellers of cash flowing businesses, but this long term gap is closing. (Page 6)
  • Owners of businesses that sold for under $1/2 Million got about two times “owner’s benefit.” Those between $1/2 – $1M got about 2.5 times, and those who sold for $1-2 Million got about 3 times (Consult a business broker to learn how owner’s benefit is calculated). (Page 7)
  • Retirement and Burnout remain the two top reasons owners are selling small businesses. (Page 8)
  • Nearly half of businesses sold up to $1M in purchase price are bought by first time business buyers. (Page 9)
  • Businesses for sale get an average of 25 inquiries that are not qualified to buy the business, and unfortunately 48% of all businesses that go to market don’t sell. (Page 4)

What to do with these results:

If you’re considering the sale of your business, contact our office today to learn more about the selling process and how to increase your odds of success so that you can become one of the 52% who is successful in selling your business.