After multiple quarters of declining business-for-sale transactions, BizBuySell.com's new data for the third quarter of 2009 suggest that the state of the small business economy is
finally beginning to improve.

The report shows a 24% year-over-year drop in closed small business
transactions. While still lagging behind year-ago transaction numbers,
BizBuySell.com's previous report -- which included data for the second
quarter of 2009 -- showed a dramatic 50% decline in closed
business-for-sale transactions when compared to the same time period in
2008. Closed transactions are reported to BizBuySell.com by business
brokers nationwide.

BizBuySell.com's quarter-over-quarter data also supports the rebound
in the business-for-sale marketplace. The number of closed transactions
reported in the third quarter increased by 7.4% as compared to second
quarter transactions. Just one year earlier, when the recession was
hitting its stride, that same quarter-over-quarter statistic dropped
30%.

BizBuySell.com believes this is a sign that the market has hit bottom and is fortunately now beginning to turn around. As credit eases, business fundamentals recover and SBA lending criteria
change with respect to goodwill, the fourth
quarter of this year and the first quarter of 2010 will likely show increased
signs of recovery and growth.

BizBuySell.com's third quarter data suggests that business sellers are
dropping their prices, which is making it possible for more deals to
close. For example, the median sale price for closed transactions fell
to $149,000 from $189,500 year-over-year, a 21.4% decline in price.

The metrics used to value companies have seen a similarly dramatic
downward trend. Revenue multiples on reported closed transactions
dropped 9.6% to .62 in the third quarter of 2009, and cash flow
multiples dropped to 2.44, a 12.2% year-over-year decrease. The revenue
and cash flow multiples are calculated by dividing the selling price of
the business by its reported annual revenue or cash flow.

A recent BizBuySell.com survey
of business brokers around the country similarly revealed that they are
positive about the future of small business transactions:

---   34% of business brokers reported expecting to close their next deal within the next few weeks.

---   75% of survey respondents expect to close their next small business transaction within the next three months.

---   47% of survey respondents believe small business transaction
levels will not fall any further than they were during the second
quarter of 2009, which leads 78% of survey respondents to believe that
business-for-sale transactions will begin to increase again before Q2
2010.