BizBuySell’s 2019 Annual Confidence Index shows that the number of small businesses sold in 2019 dropped compared to 2018 but the sales value increased. According to the report, the median price of sold small businesses increased by 7% to $567,000 in 2019. The closed sales went down by 5.5% to 9,476 deals. The survey also found that small business cash flow improved by 2% to reach $122,506.
The index also analyzed other issues of importance to small businesses including owners’ main concerns coming into 2020, top-performing industries and markets, and overall health of the small business sector.
The main issues for small business owners coming into 2020 include the minimum wage increase, the presidential election and tax regulations. Forty-two percent of the respondents said higher tariffs on Chinese products have increased their costs and 64% of them are planning to increase their price to remain profitable.
Several cities reported growth in small business sales including Houston, Dallas, San Antonio, Detroit and Baltimore. But Richmond, Virginia topped the list with a 53% increase in the number of small businesses sold in 2019.