The median sales price of small businesses sold in the Sacramento area in 2016 was $218,500, a 56 percent increase over the prior year median of $140,000, according to San Francisco-based BizBuySell.
The 2016 calculations were based on 53 transactions reported last year on BizBuySell.com. That was up from 50 listings in 2015.
BizBuySell said the median revenue of the area businesses sold last year was $425,325, up 77.2 percent from $240,000 the prior year.
The majority of closed sales last year were in the service industry, with 34 of those businesses changing hands in the area.
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The Sacramento area’s strong year was part of a national trend. BizBuySell said there were a record 7,842 closed transactions nationwide in 2016, the highest annual total of small business sales since BizBuySell started tracking data in 2007.
Analysts cited a generally improving economy, low interest rates, improved financing options and more business owners looking to sell in the post-recession period.
“Not only are more small businesses changing hands, but healthier businesses put the new owners in a great position for continued success. This bodes well for the market but also points to a bright future for small businesses overall,” said Bob House, president of BizBuySell.
The median revenue of businesses sold nationwide grew 5.2 percent, from $449,462 in 2015 to $472,798 in 2016.
House added that “there will certainly be issues to watch under the new Trump administration (but) as long as small business financials continue to improve and a steady supply of listings enter the market, transaction activity should continue its momentum well into the new year.”