3 Signs It's a Good Time to Sell Your Business

There's good news for pet store owners looking to sell their businesses. According to a recent report in The Wall Street Journal (WSJ), a number of key indicators point to the fact that the economic environment is becoming a lot more friendly to small business sales. Among the signs of it being a seller's market for small business owners cited in the article were:


There are more buyers.
According to online small-business marketplace BizBuySell.com, the number of small businesses sold in the third quarter of 2013 was up approximately 42 percent over the same period in 2012 (1,685 versus 1,189).


Businesses are worth more.
In in Q3 2013, the average value of small businesses using BizEquity.com, an online valuation service, was about 51 percent higher than the same period last year.


There is more buyer capital available.
The Small Business Administration is backing more loans. According to the WSJ report, SBA-backed 7(a) loans increased from 11,442 in Q3 2012 to 12,976 in Q3 2013. The total value of those loans also increased from $4.3 billion to $5.3 billion.

Among the types of businesses the article cites as being sold most often, retailers came in second, just behind service companies and ahead of restaurants.

However, it's not all sunshine and roses for small business sellers. The WSJ article notes that the high number of baby-boomer business owners who will presumably be looking to retire soon may end up flooding the market, creating more supply than demand. Add relatively high lease rates to the mix, and sellers may be looking at a narrowing window of opportunity to get the most for their business.