BizBuySell.com, one of the Internet’s largest marketplace for buying or selling a small business, released economic data for the first quarter of 2010 that suggests small business-for-sale transactions and valuations have continued to show signs of a slow but sure economic recovery.
According to the BizBuySell.com Insight Report data, the number of closed transactions reported to BizBuySell.com in First Quarter 2010 rose slightly, 0.3 percent, as compared with the same time period in 2009 — from 1,146 transactions to 1,149. Market improvement is more evident when comparing First Quarter 2010 data to the prior quarter, with BizBuySell.com reporting a healthy 6.3 percent increase in transaction volume.
This report seems to confirm what many of my clients have been telling me. It’s getting better, but slowly. Many are taking a cautious view of the future, and most will not commit to much of a forecast or projection. When asked how 2010 looks, they say, “Probably better than 2009, but we’ll see….”
This also may explain the headlines on the front page of my local newspaper: “Economic Recovery Here, but Where are the Jobs?” Business owners are still feeling the pain of having to let go of good employees, and they are not willing to hire so quickly if it means having to do it again.