Older business owners are selling out. But younger business owners can’t afford to buy. What does this mean? Low business valuations. - Anthill Magazine

According to the latest BizExchange Index, the volume of businesses for sale has increased in the first quarter of 2011, potentially driven by an aging population. However, younger generations are not in a position to buy.

The volume of businesses for sale has increased during the first quarter of 2011 after a fall in the previous quarter, says the latest BizExchange Index. The rise in the volume of businesses for sale also means an increase in the number of companies with an EBIT ratio between two and three. However, over two thirds of them still have a EBIT ratio lower than two.

“There was a slight upturn in values under $500,000 turnover and over $5 million turnover, while values in between remained flat,” said David Bird, BizExchange Chairman.

To read the full, original article click on this link: Older business owners are selling out. But younger business owners can’t afford to buy. What does this mean? Low business valuations. - Anthill Magazine

Author: Diogo Mourato