Pricing a business is important to make sure the right buyers are attracted and down walk during due diligence. Pricing the business too high and prospective client will not look or walk away during due diligence. Pricing too low and you leave money on the table. Thanks BizBuySell for putting a great survey together https://www.bizbuysell.com/insight-report/?utm_source=bizbuysell&utm_medium=bbs_email&utm_campaign=insightsbroker012023.
As the number of closed deals continued ticking upward in 2022, the median sale price dropped 3% to $315,000. While buyers are still on the lookout for good businesses that justify the higher cost of capital, sellers are feeling the impact of inflation and rising interest rates on business values.
Median revenue of businesses sold in 2022 declined 2% to $650,000 compared to $665,107 the previous year, and median cash flow declined 1% to $148,765, compared to $150,000, respectively. Similarly, the average revenue multiple dropped slightly to .65 vs .67 in 2021, and the average cash flow multiple dropped to 2.52 vs 2.55 in 2021.
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