According to the Washington Post, "a record number of small business owners are selling their companies." For many, entrepreneurship is the key to unlocking economic opportunity, from basic self-sufficiency to achieving the American Dream. For business owners that want to cash out through selling their business, the report points out that "good financials make a company more valuable and likely spark an interest both from people looking for a good investment and those looking to get out."
Out of the 7.482 small businesses sold in 2016 across the US:
- 7% (or 548) were sold in the NYC-metro region.
- Median asking price was $289,500 and median selling price was $249,500.
- Cash flow multiple: 2.11 (In other words, the business sold for 2.11x cash flow.)
Also included in the report by BizBuySell.com are sales by geographic region across the U.S. and industry. Not sure how useful this data is as small businesses come in many different shapes and size in NYC compared to nationwide, but it's interesting to see the data nonetheless.