46.5 F
Fort Worth
Saturday, October 24, 2020
Banking Boom market in small businesses shows signs of cooling

Boom market in small businesses shows signs of cooling

Other News

Pandemic hammers small businesses vital to economic recovery

EDITOR'S NOTE — Small businesses around the world are fighting for survival amid the economic fallout from the coronavirus pandemic. Whether they...

Exxon’s oil slick

Exxon Mobil is slashing its capital spending budget for 2020 by 30% due to weak demand caused by the COVID-19 pandemic and a market...

Folk music’s Mark Twain: 7 Essential tracks from John Prine,

NEW YORK (AP) — Some people, the songs just come out of them. For nearly half a century, they tumbled out of John Prine...

Tarrant County records another COVID-19 death

Tarrant County Public Health (TCPH) on Wednesday, April 8 reported that a resident of Euless has died as the result of the COVID-19 virus....

NEW YORK (AP) — The boom market in small businesses is showing signs of cooling.

The number of small business sales counted by online market BizBuySell.com fell 6.5% during the first quarter from the same period of 2018, following a 6% fourth quarter drop. BizBuySell.com reported 2,504 first quarter transactions, down from 2,678 a year earlier.

Sales remain very strong, and the first quarter total is close to the record for a January-March period, according to BizBuySell.com, which compiled its results from a survey of brokers who arrange small business transactions. But a number of factors is likely contributing to a slight diminishing of owners’ desire to sell and potential buyers’ interest in acquiring firms, Jeff Snell, chairman of the trade group International Business Broker Association, said in a statement. Among them: Low unemployment, which indicates that many people are satisfied in their jobs and not looking to switch to entrepreneurship. Small companies’ profits are up, and that may dissuade owners from letting go of their businesses, Snell says.

Small business sales began surging at the start of 2013 as the stronger economy lifted prices for companies and baby boomer owners decided it was a good time to sell and retire. As companies grew healthier, they became more attractive to buyers. And as the unemployment rate dropped and it became harder for businesses to find talented workers, they began acquiring other companies in order to expand.

But the slowing of sales seen in the past two quarters could continue, said Jessica Fialkovich, president, Transworld Business Advisors of Denver.

“We are seeing signs that the market could become more challenging in the future with interest rates rising and financing becoming both more expensive and harder to acquire,” she said in a statement.

The Federal Reserve raised interest rates four times last year and a total of nine times since 2015. The Fed indicated after its most recent meeting on March 21 that it foresaw no more increases this year as the economy is slowing. While that can keep borrowing costs stable going forward, the rate increases through 2018 have made it more expensive to finance purchases. And a weaker economy is likely to make some potential buyers wary about acquiring a business.


Follow Joyce Rosenberg at www.twitter.com/JoyceMRosenberg . Her work can be found here: https://apnews.com

Latest News

Best Maid can put you in a pickle store

Fort Worth's Best Main can put you in a pickle – a pickle store, that is. Friday, Fort Worth’s...

Southside Bancshares: 3Q Earnings Snapshot

TYLER, Texas (AP) _ Southside Bancshares Inc. (SBSI) on Friday reported third-quarter net income of $27.1 million.The Tyler, Texas-based bank said it...

Facebook Data Center honored with Vandergriff Award

The Facebook Data Center was honored with the annual Fort Worth Chamber of Commerce’s Vandergriff Award at the Chamber’s 10th Annual State...

US airlines still piling up losses but say demand is rising

By DAVID KOENIG AP Airlines WriterDALLAS (AP) — Airlines are piling up billions of dollars in additional losses as the pandemic chokes...

Bank OZK: 3Q Earnings Snapshot

LITTLE ROCK, Ark. (AP) _ Bank OZK (OZK) on Thursday reported third-quarter earnings of $109.3 million.The Little Rock, Arkansas-based bank that has...