The Atlanta small-business transaction market went on a tear in the second quarter.
The median selling price of small businesses sold in metro Atlanta more than doubled in the second quarter, compared with a year ago, according to new data from the online business-for-sale marketplace, BizBuySell.com. Revenue of businesses sold in the second quarter rose nearly 68 percent from a year ago.
According to an analysis of 44 closed transactions in metro Atlanta by BizBuySell, businesses sold for a median price of $289,000 in the second quarter, up 114 percent from a year ago. The businesses, which sold for 87....
Walden Businesses Inc. is seeing strong M&A Activity in the manufacturing, distribution and business-to-business service sectors, Vice President Sara Burden said. "As many of the businesses are recovering and able to show steady gains in revenues and profitability (albeit sometimes small gains), there is less room for price negotiations," Burden said. "There's enough competitive buyer interest to keep the values where they belong."
One factor continuing to influence sales is the buyer's ability to get reasonable financing.
"Our best acquirers are coming to us with purchase monies sitting in committed accounts waiting to make acquisitions - particularly in deals above $1 million," Burden said. "Below a million, those buyers are relying on their own cash reserves and bank financing - which is arduous at best..."