The Sacramento area saw a significant increase in the number of businesses sold last year, but the median sales price dipped 8.5 percent year-over-year, according to San Francisco-based BizBuySell.
The online business-for-sale marketplace said 84 closings reported last year on BizBuySell.com went for a median sale price of $200,000. In 2016, 53 closings had a median sale price of $218,500.
BizBuySell said the median revenue of the area businesses sold last year was $408,000, down 4 percent from $425,325.
Most of the closed sales in the area last year were in the service industry, with 44 of those businesses changing hands. Restaurant closings were a distant second with 19.
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The Sacramento area’s busy year of transactions was part of a national trend in 2017.
BizBuySell said there were a record 9,919 closed transactions nationwide in 2017, surpassing the previous record total of 7,842 set in 2016 by nearly 27 percent. BizBuySell started tracking data in 2007.
Analysts cited a strong economy, low interest rates, improved financing options and more business owners looking to sell in the post-recession period.
“It’s exciting to see the number of sellers, particularly baby boomers, who were able to close better deals and that there remains a growing supply of buyers excited to enter the small business market,” Bob House, president of BizBuySell, said in a statement accompanying the figures released this week.
The median revenue of businesses sold nationwide grew 5.8 percent in 2017 to $500,000, up from $472,798 the prior year.