For Immediate Release:
October 23, 2014
Sale and Purchase of Small Businesses on Pace for Record-Setting Year
Calhoun Companies Sees Substantial Growth in Local Market during Third Quarter
EDINA, Minn., October 23, 2014 – The sale and purchase of small businesses, a reliable indicator of economic health, demonstrate that the Twin Cities market is continuing to experience growth in the third quarter of 2014, reports Calhoun Companies, an Edina-based business brokerage firm.
“Throughout 2014, we have seen a steady increase in buyer and seller confidence leading to more, and larger, transactions,” said Andy Kocemba, president of Calhoun Companies. “Sellers are welcoming the opportunity to undergo business valuations in order to set a sales price that reflects the value of their businesses, and represents a value to potential buyers who are increasingly eager to step into the role of small-business owners as the economy continues to recover."
According to BizBuySell Insight report, in the third quarter of 2014, business transactions nationwide increased by nearly 18 percent from this time last year, resulting in the largest number of business sales in the third quarter since before the recession. Additionally, sellers are regularly receiving nearly 95 percent of their asking price, the highest percentage since the recession hit in 2008. Following increases in the first and second quarters of the year, these numbers keep 2014 on pace to record the highest number of small business transactions since the Insight report began in 2007, indicating continued economic growth beyond recovery from the recession.
Steady growth is expected to continue into 2015 and beyond due to increased buyer and seller confidence. According to BizBuySell’s recent Buyer & Seller Confidence Survey, 95 percent of buyers and 75 percent of sellers hope to close a deal in the next one to two years.
Reports of increased buyer and seller confidence in the Twin Cities are verified by current Calhoun Companies sales trends - the company wrapped up the third quarter with 12 separate transactions averaging nearly $2 million. With the inclusion of several multi-million dollar deals, including two greater than $5 million, total sales topped $23.7 million in what is traditionally the slowest quarter of the year.
About Calhoun Companies
Calhoun Companies is a leading independent business brokerage serving the Twin Cities area and the Upper Midwest since 1908. Specializing in business valuation, buying and selling businesses, and commercial real estate, the team at Calhoun confidently connects buyers and sellers through a successful transaction. Current listings and additional information included on the Calhoun Companies website.