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SAN FRANCISCO — Sale prices of convenience stores were on the rise in the first three months of 2015 compared to both one year ago and one quarter ago, according to BizBuySell.com's First Quarter 2015 Insight Report.
The median sale price for c-stores was $195,000 during Q1 2015, up from $185,000 in the first quarter of 2014. This also marked a sharp increase from the median price of $150,000 during fourth-quarter 2014.
Median revenue for stores sold during Q1 2015 was $614,500, compared to $540,000 a year ago and $600,000 in the previous quarter.
"While it’s great to see the median sale price of convenience stores increased in Q1..., it’s just as notable to see the median revenue and cash flow remained strong. Strong revenue and cash flow performance indicate the convenience store sector is growing healthier," said Bob House, group general manager of BizBuySell.com and BizQuest.com. "...The median cash flow stayed strong at $100,225. This extra cash allows business owners to reinvest some of that money back into the store, which in turn, helps raise the overall value of the store. Improving revenue and cash flow numbers also allows sellers to ask for and receive more money for their convenience store."
The number of convenience store sales is likewise on the rise. BizBuySell recorded 87 sales during the latest quarter, up from 71 sales one year ago and 67 sales the previous quarter.
"We continue to see sustained growth in the business-for-sale market," said House. "It's now been more than two years of consistent financial improvement and we continue to reach new milestones each quarter. It's great to see that small-business owners can grow and successfully sell in today's environment."
The increase in transactions is due to growth of both supply and demand in the business-for-sale market, according to BizBuySell.com's surveys of buyers, sellers and business brokers. Baby boomers supply quality listings as they reach retirement, and buyers have more lending options to help them realize their small-business ownership plans.
Overall, sales of 1,830 small businesses were reported during the latest quarter, up 6 percent from one year ago.
San Francisco-based BizBuySell.com is the largest marketplace for buying or selling a small business, with more than 1.4 million monthly visits. Its Insight Report aggregates statistics from business-for-sale transactions reported by participating business brokers nationwide.