According to an article last week in The Wall Street Journal, conditions for small business transactions are continuing to improve. Sales of small businesses are on the rise as more baby boomers edge toward retirement.
The number of small businesses sold during the third quarter of this year totaled nearly 1,700, up from less than 1,200 in the same period last year, according to BizBuySell. That marks the third straight year-over-year increase.
In addition to the number of small business sales, business valuations have also climbed over the past year. According to BizEquity.com, the median valuation on the site has increased from $860,000 during the third quarter of 2012, to $1.3 million in the third quarter this year.
In yet another positive sign, small business lending has continued its steady improvement. According to the SBA, 7(a) loans, which can be used for acquiring, establishing or expanding a business, totaled $5.3 billion in the third quarter, up from $4.3 billion during that period in 2012.
As more baby boomers eye retirement and economic conditions continue to improve, we expect to see more of these trends. To read the full article in The Wall Street Journal, please click here.