Buyers of businesses under $1 million in value are more often buying a business as a way of “buying a job”. These buyers used SBA financing only 25% of the time per the 4th quarter 2015 Market Pulse Survey.
Top Motivations for Buyers
Additional Key findings:
The top two reason transactions do not get closed:
- Unrealistic Expectations
- Poor financial records
Of 348 business brokers and M&A advisors, representing 38 states half of the respondents (56%) had at least 10 years of experience in the M&A industry. Respondents completed 410 transactions this quarter and of the deals closed in the middle market the majority of the businesses closed at or above 80% of the benchmark price.