Focus

Everywhere you look, you probably see signs of the economic downturn that's plaguing the U.S. But if you look at the small-business sector, you'll see something of an anomaly: There's a boom in purchases of small businesses.

BizBuySell, an online business marketplace, recently released its quarterly report about national sales trends. The report shows a 48 percent increase in the number of small businesses listed on BizBuySell that sold during the first six months of 2008 compared with the same period in 2007.

According to the report, the median sale price for small businesses was $200,000 during 2008's second quarter, a $14,000 increase from the same period the previous year.

William Bruce, president of the American Business Brokers Association, told CNNMoney.com that this inverse trend small businesses are following during a down economy isn't unheard of.

"When the economy slows, business executives want to downsize and employees have a fear of being transferred, outsourced or fired," he said. "As a result, these employees see small-business ownership as an attractive and viable opportunity."

Small-business valuations are on the rise, as well. BizBuySell says the average multiple of revenue for businesses sold during the second quarter of 2008 was 0.69 compared with 0.64 during the same time in 2007. According to CNNMoney.com, this means a business pulling in $395,000 in annual revenue would sell for an average of $272,550.

Despite this relative good news for small businesses, there are still reasons to be cautious. For one, lending remains tight, so if you are looking to purchase a small roofing company, be prepared to work harder to secure financing than you may have had to a year ago. And as a result of tightened lending, fewer deals are closing.

But tightened lending and low closing rates haven't quenched the market for small businesses. Basically, now can be a good time to buy or sell a small business—perhaps one of the few positive outcomes of the current economy.

Ambika Puniani Bailey is editor of Professional Roofing and NRCA's senior director of communications.