Home The Latest Outlook brighter for sales of Portland businesses

Outlook brighter for sales of Portland businesses

| Print |  Email
The Latest
Thursday, May 09, 2013
 BY BRANDON SAWYER | OB RESEARCH EDITOR

Much like residential real estate that finally seems to be regaining ground lost during the recession, sales of businesses are also seeing modest improvement according to data from BizBuySell.com, the largest online marketplace of businesses for sale.

Nationally, small business sales increased 56% in the first quarter of 2013 compared to the same quarter last year, achieving the most sales since the second quarter of 2008. The Portland Metro area is lagging that trend with just an 8% increase in business listings in the first quarter, from 147 in 2012 to 159 in 2013. Other Portland statistics are more promising: Among those listed businesses, the median asking price rose 15% from $195K to $225K; median annual revenue increased 10% from $378K to $415K; and median cash flow grew 7% from $85K to $91K.

BizSaleChart10513

This follows years of stagnation for small business owners looking for an exit. Potential buyers were also unable to get a loan or with capital diminished by stock market woes. In 2012, the number of completed business sales in Portland via BizBuySell.com increased to 67, 18% higher than five years prior. However, the median sale price fell to $150K from $185K in 2008, a 19% drop, and median revenue for the businesses sold fell to $337K from $355K. Yet, while prices dropped, the gap between asking price and sale price narrowed.

BizSaleChart20513

Among the 67 Portland-area businesses sold in 2012, 25 were in the service industry, 20 were retailers, 15 were restaurants, 4 were manufacturers and 3 were in other industries. Manufacturers fetched the highest median price, $490K while retailers got the lowest, $100K.

If business financials continue to improve along with investor confidence and market stability, activity between buyers and sellers of businesses could pick up further in 2013. Business brokers are cautiously optimistic according to BizBuySell.com. More than half of them expected "slight to significant improvement" in a survey it conducted last year.

Research editor Brandon Sawyer digs heaps of data about privately-held and public companies, economics and industries.

 

More Articles

What I'm Reading

November/December 2014
Wednesday, October 22, 2014

Peter Lizotte at ACME Business Solutions and Roger Busse at Pacific Continental Bank share their favorite reads.


Read more...

The Bookseller

November/December 2014
Wednesday, October 22, 2014
BY AMY MILSHTEIN

Everyone knows college is expensive, but a look at the numbers brings that into sharp — and painful — focus.


Read more...

Downtime

November/December 2014
Wednesday, October 22, 2014
BY JESSICA RIDGWAY

Bob Dethlefs, CEO of Evanta, balances work and play.


Read more...

100 Best Nonprofits to Work for in Oregon [VIDEO]

News
Thursday, October 02, 2014

Screen shot 2014-10-02 at 11.17.21 AMMore than 5,500 employees from 180 organizations throughout the state participated in the 100 Best Nonprofits to Work for in Oregon project.


Read more...

Election Season

November/December 2014
Wednesday, October 22, 2014

We didn’t intend this issue to have an election season theme. But politics has a way of seeping into the cracks and fissures.


Read more...

Political Clout

November/December 2014
Wednesday, October 22, 2014
BY KIM MOORE

Businesses spend billions of dollars each year trying to influence political decision makers by piling money into campaigns.


Read more...

Three problems with Obama's immigration order

News
Wednesday, November 26, 2014

BY NISHANT BHAJARIA | OP-ED CONTRIBUTOR112614-immigration-thumb

By now, anyone who knows about it has a position on President Obama’s executive order on immigration. The executive order is the outcome of failed attempts at getting a bill through the normal legislative process. Both Obama and his predecessor came close, but not close enough since the process broke down multiple times.


Read more...
Oregon Business magazinetitle-sponsored-links-02
SPONSORED LINKS