Navigating the Business Climate: Four Key Insights from the Recent BizBuySell Quarterly Review
BizBuySell serves as an invaluable hub for both business buyers and sellers, providing an array of resources tailored to meet their needs. The online platform has partnered with a broad array of seasoned business brokers to deliver insights on topics that are critical to business owners, buyers, and sellers alike. This curated content, which ranges from strategies for making a business more attractive to potential buyers, positions BizBuySell as a trusted resource for business-related information.
One of the primary offerings of BizBuySell is its Insight Reports, published quarterly with interactive market data. These reports provide a comprehensive snapshot of current market trends that are crucial for brokers and business professionals to stay updated with. The latest report, which encapsulates significant trends observed in the first quarter of the year, can be accessed here.
This report highlights several key shifts that have taken place, including:
1. Surge in Transactions
The Insight Report for Q1 2023 signals a steady recovery of transactions from the dip experienced in Q2 2020. With a staggering 24% year-over-year increase, transactions are gradually reverting to pre-pandemic levels.
While the restaurant sector remains a minor setback to this rebound, the sector itself has seen a significant resurgence, with a year-over-year increase of 42%. Nonetheless, restaurant transactions still remain 22% below the levels witnessed in Q1 2019.
2. Evolution in Buyer Preferences
An interesting finding from BizBuySell’s buyer survey was the shift in business preferences. 35% of the respondents expressed an interest in the service sector, followed by a 15% inclination towards retail. Doug Whitmire, Director of Sales, noted, “There seems to be a demand tilt towards business services, self-storage, car washes, and advanced distribution services for manufacturers. With limited opportunities in these areas, buyers are flocking towards them, driving up sales prices due to limited inventory.”
3. Growth in Listings
The first quarter of 2023 saw a substantial uptick in listing growth, with service listings increasing by 14%. Despite lagging behind, the restaurant sector witnessed a growth of 10%. As the effects of the pandemic subside, we may anticipate a significant resurgence in the restaurant industry.
4. Surge in Sellers
The Q1 report suggests a spike in sellers who had previously refrained from entering the market. The impending ‘silver tsunami’ – referring to the wave of Baby Boomers looking to sell their businesses – coupled with a myriad of burnout reasons from supply chain to labor issues to pandemic-related fatigue, is leading to an increased number of sellers in the market.
Guidance for Sellers
The BizBuySell team highly recommends that sellers address and resolve significant supply chain issues before stepping into the market. Whitmire explained, “We encourage our clients to collaborate with us in rectifying these issues before we go to market. Often, you only get one shot with a buyer – if you lose them, it’s game over.” It’s prudent for sellers to address and rectify any COVID-related setbacks to ensure a seamless and successful sales process.
