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For Immediate Release:
January 9, 2015
Record-Setting Year for Sale and Purchase of Small Business is Positive Indicator for 2015
Calhoun Companies Averages Nearly $1 Million per Small Business Sold in 2014
EDINA, MINN., January 9, 2015 – In a nationwide survey conducted by BizBuySell, 67 percent of business brokers reported a year-over-year increase in transaction activity in 2014. This is consistent with reports that indicated 2014 was on track to record the highest number of small business transactions since 2007. In 2014, Calhoun Companies completed 48 transactions with more than 25 percent of those transactions surpassing $1 million.
“We regularly track these national trends and evaluate the extent to which they reflect what’s happening in the Midwest market,” said Andy Kocemba, president of Calhoun Companies.
In the fourth quarter alone, Calhoun Companies closed 15 transactions, representing more than $10 million in sales. Overall, the company ended 2014 with transaction totals of more than $47 million. The average price each business sold for increased from 2013, and included 13 deals exceeding $1 million.
The main driver of growth in 2014 was an increase in the number of qualified buyers, drawn in by an overall increase in small business performance and confidence. According to the Wells Fargo/Gallup Small Business Index, in the fourth quarter of 2014, small business owner optimism increased to 58, up 34 points from this time last year. An increasing number of sellers and an improved overall small business environment were also significant contributors to growth in 2014. These trends are expected to continue into 2015.
“The trends we are currently seeing from the Twin Cities make us optimistic for 2015. Buyers and sellers are gaining confidence, and local small businesses are performing increasingly well,” said Kocemba.
The highest levels of optimism among brokers occurred in the Midwest and Eastern regions, with 22 percent of respondents expecting transaction levels to significantly improve. Nationwide, 82 percent of brokers expect transaction activity will improve in 2015. Surveyed brokers also expect sold businesses will command a higher price in 2015 due to an increase in overall business performance.
About Calhoun Companies
Calhoun Companies is a leading independent business brokerage serving the Twin Cities area and the Upper Midwest since 1908. Specializing in business valuation, buying and selling businesses, and commercial real estate, the team at Calhoun confidently connects buyers and sellers through a successful transaction. Current listings and additional information included on the Calhoun Companies website.
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