Quarterly Market Intelligence Report - SME March 2024

Quarterly Market Intelligence Report - SME March 2024



We are pleased to announce that the Mar-24 Business Sales Quarterly Report has been released, and it shows a number of factors are at play in the business sales market in New Zealand:

  • The report shows that the demand side of business sales has reached historical highs with 19,866 confidentiality agreements signed in the last twelve months which is 51% ahead of the same period last year.  
  • We would usually expect volumes of completed business sales to increase when our lead indicator for demand is up 51%, this has not eventuated with business sales down 5% to Mar-24. The key reasons for the 5% decline were cautious purchasers delaying decisions due to economic and Govt uncertainty and ongoing valuation gaps not being resolved between purchasers and vendors.
  • The average business price has recorded an annual decrease of 1%, a detailed analysis shows business prices peaked in Dec-22.

Emerging Trend – Vendor Financing

  • In the past twelve months vendor finance has become a more common aspect of completed business sales; our data shows that 12% of the last 100 deals completed had vendor finance in the capital structure. Three years ago less than 2% of deals had vendor finance. Further detail on the reasons why this new trend has emerged is contained in the quarterly report.

We hope that this report provides valuable insights into the current state of the business sales market in New Zealand. For further details on business prices, recent sales, and multiples, please refer to the full report below. 

(Note there is a new section in the report that has detailed information on business multiples and recent business sales).  

Click below to view the full report. ⬇️