Elgin Area Chamber Of Commerce: Small-Business Sales Pick Up As Pandemic Wears On

Elgin IL

28 October, 2021

3:30 AM

Description

Press release from the Elgin Area Chamber of Commerce: October 27, 2021 By Rohit Diwadkar CoStar News   The pandemic has led many to reconsider their career options, and an increasing number of people appear to be exploring business ownership.   Traffic to CoStar Group's business marketplace BizBuySell has jumped 29% over pre-pandemic 2019, and the number of businesses being bought and sold is marching higher. Completed transactions in the third quarter were up 17% over the previous quarter and 11% year over year, according to BizBuySell's latest Insight Report, which tracks and analyzes U.S. business-for-sale transactions. The median revenue of businesses sold in the third quarter was $671,713, up 6% year over year. Meanwhile, buyers are paying record-high prices for businesses that have continued to perform well during the pandemic. The median sale price in the third quarter hit a new high of $349,500, 17% above the previous year and 40% above 2019's third-quarter pre-pandemic levels. Sellers are growing more confident that they can hold out for a good price for their business as coronavirus case numbers fall in the U.S. Seller confidence climbed to 57, up from 45 in 2020, which is the highest mark since 2018's high of 58. Buyers, though, have shown less enthusiasm as the supply of profitable businesses for sale dwindles and the cheap deals of last year fade into the rearview mirror. The report also analyzed survey responses from roughly 2,400 business owners, buyers and brokers. About 49% of owners say the labor shortage is affecting their business, while business brokers see it as the No. 1 concern facing small businesses. Still, despite shipment delays and rising costs for material and labor, 47% of small-business owners surveyed said their business is performing better than in 2020. Source: CoStar Group, www.costar.com This press release was produced by the Elgin Area Chamber of Commerce. The views expressed here are the author's own.