New Study: Small Businesses Selling Faster Than Ever

According to new data from BizBuySell.com, the median number of days it takes to sell a small business has been declining since mid-2012. 

According to the report, the median business sale time has decreased to 153 days in Q4 of 2014, down 23% from its peak of 200 days in Q2 2012.  Bob House, Group General manager of the company, states that the reason for the decline is likely a combination of factors to include a steadily improving economy and an overall growth of buyers on the market.

MedianDaysByQuarterSold

 

 

 

 

For FedEx contractors who are looking to sell their routes, this should be of particular interest.  Our experience suggests that FedEx routes sell far more quickly than more traditional businesses.  We believe this is the case for several reasons:

  • Weekly settlement statements directly from FedEx allow buyers to quickly validate the income of the business given that the reports are coming from a trusted source
  • Simplicity of the business model.  FedEx contractors aren’t required to constantly seek out new customers or innovate their product offerings.  In short, a contractor’s job is to primarily maintain the trucks and retain employees.
  • Steadily increasing revenue.  Often small businesses experience peaks and valleys with respect to their overall growth and revenue.  FedEx routes produce highly steady and consistent volume and rarely decrease in revenue year-over-year.
  • Lack of competition.  Because contractors have exclusive contracts with FedEx to service certain areas, they are not in competition with each other.  Often small businesses struggle with new and larger competitors entering into their marketplace, therefore decreasing sales and making a sale of the business more difficult.

For more information on the article referenced above, please visit

http://www.bizbuysell.com/news/article110.html?utm_source=bizbuysell&utm_medium=bbs_email&utm_campaign=brokerb052815

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