BizBuySell is out with their 2017 Insight report:
The report contained very good news, small business sales in 2017 reached record highs (besting the previous record set in 2016 by 27%).
Of note, Tucson Business Brokers reported 30 business sales for 2017. The average selling price for a Tucson business was $237,500. These businesses sold at an average cash flow multiple of 2.32.
The number of Tucson Business listed for sale on the site during the 4th quarter numbered 102.
Phoenix saw the successful sale of 262 business with 1257 listed during the 4th quarter of 2017. Average cash flow multiples on these sales was 2.04.
Although the Insight report is very informative, there is one large problem. The statistics rely on self-reporting from the brokers themselves. Brokers have little incentive to report deals that do not appear favorable nor is there any way to independently verify if a deal has in fact closed.
That said, the above stats seem indicative of the market. Phoenix continues to be one of the most competitive markets in the country for business sales. The market balance sees many more sellers than buyers. Tucson businesses tend to be priced higher than their counterparts in Phoenix, which contributes to slower sales and lower sales volumes.