Small business sales to grow by 30 percent, says expert

2/28/2011

Entrepreneurs having trouble with small business lending are turning to a new solution - they are selling their companies to larger corporations, Bloomberg reports.

Thanks to the recovering economy, many larger companies are looking to expand. Rather than developing new teams and departments, some are finding it easier and more cost-efficient to simply purchase firms that already have their business plans in place.

"[The sale of businesses] really picked up in January," Peter Siegel, founder of BizBen.com, a website that lists about 7,000 small and midsize businesses for sale, told the source. "I think there was just pent-up demand. A lot more buyers have come into the market because the prices are so low, and they wanted to pick up some bargains."

Siegel predicts the number of small businesses sold in 2011 will grow by 30 percent year-over-year. In January, BizBen saw a twofold increase in companies sold in some areas during the month of January alone.

The key is to do what makes sense for an entrepreneur's company and overall business goals. If selling his or her company can help reach an objective, then it may be worth selling out to a larger party.