The number of Greater Hartford businesses that traded hands during the first quarter increased, although average sale prices fell sharply, a new report says.
The analysis by BizBuySell.com, which tracks self-reported small business sales, says 16 businesses were sold in the region between January and March at a median sale price of $229,000. That’s six more sales vs. a year prior. Meantime, the median sales price fell by 23.6 percent.
Businesses sold on average received 83 percent of the asking price, down from 97 percent in the first quarter of 2018.
Median sale prices were weighed down during the period due to several transactions involving small restaurant chains changing hands, including two eateries selling at lows of $75,000, according to the report. The $4 million sale of a New England-based aerospace manufacturer led business sales during the quarter.
The report does not specify which businesses were sold.
According to the report, the quarter ended with 171 businesses listed for sale at an average asking price of $225,000, up 21.7 percent from $184,900 a year earlier. Businesses for sale reported median annual revenue of $522,000.
Nationally, a total of 2,504 businesses were sold during the first three months of 2019, which is a 6.5 percent decline vs. the year-ago period. That nearly mirrors a 6 percent fall in business sales in the fourth quarter of 2018.
The report pointed to the recent government shutdown, low unemployment and record profits as potential reasons for less businesses being sold during the first quarter.
But despite the recent declines, there were still a record number of small businesses sold in 2017 and 2018.
“So while reported deals are down slightly from a year ago, the market continues to be very active compared to the previous decade,” the report said. “It is too early to tell if the recent plateau marks any kind of market shift or not.”
Founded in 1995, BizBuySell bills itself as the largest business-for-sale marketplace.
