Sale prices for area businesses on the rise

BizBuySell analysis shows more transactions completed

Milwaukee valve nibco

The median sale price for Milwaukee area businesses increased significantly in the second quarter, according to an analysis of Milwaukee area business sales in the second quarter.

Businesses in the metropolitan area, which includes Milwaukee, Ozaukee, Washington and Waukesha counties, sold for a median price of $987,500 in the second quarter, up from a median $800,000 in the second quarter of 2015.

There were more transactions completed in 2016’s second quarter, but the median revenue was lower than the same period last year.

BizBuySell, an online business-for-sale marketplace listing 45,000 global businesses at any one time, analyzed five closed transactions in the Milwaukee market in the second quarter, which had a median revenue of $1.3 million and a median cash flow of $319,538. Buyers paid 2.63 times cash flow, on average. Of three closed transactions analyzed for the report in the second quarter of 2015, median revenue was $1.5 million and median cash flow was $305,552. Buyers paid an average 2.62 multiple of cash flow.

Among active Milwaukee-area business listings on BizBuySell, median revenue is up 34.2 percent from the year-ago quarter, to $704,355. There are 22 percent more businesses for sale than a year ago. And while median cash flow is up 14 percent, the average multiple of cash flow is down 3 percent. The median asking price is $349,000, up 10 percent year-over-year.

Sign up for BizTimes Daily Alerts

Stay up-to-date on the people, companies and issues that impact business in Milwaukee and Southeast Wisconsin

Molly Dill, former BizTimes Milwaukee managing editor.

No posts to display