Small Businesses Changing Owners at Fastest Post-Crisis Rate

Small Businesses Changing Owners at Fastest Post-Crisis RateBy one measure, small businesses were bought and sold last year at the fastest pace since the financial crisis of 2008, fueled by a healthier economy and brighter prospects.
That’s according to BizBuySell, the online marketplace that connects small-business sellers with potential buyers.
More than 7,000 small businesses changed ownership in 2013, up from about 4,700 in 2012. That represents the fastest turnover rate since the start of the recession.
BizBuySell’s Curtis Kroeker said that the post-crisis slowdown in transactions had resulted in “pent-up supply and demand that needed the right economic and capital conditions to materialize.”
According to the National Federation of Independent Business, the BizBuySell report suggests that 2014 is “likely to see the number of small businesses changing hands continue to increase, though the rise is unlikely to match 2013’s impressive growth rate.”
However, economic conditions that drove the 2013 increase are expected to improve further in 2014, with sufficient capital flowing for further acquisitions.
“In addition, more baby boomers are approaching retirement and will likely be looking to sell their businesses, increasing the supply available for acquisition,” the NFIB says on its website.
Meanwhile, small-business optimism ended the year slightly up from November at 93.9, according to the NFIB’s latest index. That’s below the previous 3 mid-year readings of over 94, and 6 points below the pre-recession average.
Reports of capital spending rose significantly in December, however, increasing by 9 points from November. And job creation among NFIB firms was the best since February 2006.

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