Mar-23 Business Sales Quarterly Report – Prices, Multiples & Recent Sales

Mar-23 Business Sales Quarterly Report – Prices, Multiples & Recent Sales


This is our Nineth Quarterly Market Intelligence Report (1st was Oct-20) and the data shows the following trends in the business sales market:

  • The average business sale price has increased 4% annually to Mar-23 and this results in a 19% increase over the last three years. The new data is showing a 3% softening in the average business price when compared to the previous quarter to Dec-22.
  • The median multiple paid for businesses in New Zealand has remained very consistent (3.45x) and the variance between years has not exceeded 5%. Given there has been no growth in multiples over the past 3 years it has become very evident price increases are the result of higher volumes of businesses being sold in the $2m-$5m range and like the housing market we now have a higher percentage of businesses selling for >$2m.
  • Completed business sales have remained elevated for the twelve months to Mar-23 and was the third highest year on record; however, this was 3% behind Mar-22 which was the highest year on record.
  • Demand for businesses has flattened off in the 12mths to Mar-23 and is below the record levels experienced in the twelve months to Mar-22, however the levels are still above pre-covid volumes and are regarded as being above average.
  • Supply of new businesses coming to market has remained stable to Mar-23 and has remained in line with historical levels.
  • The business sales market has not experienced the huge declines that we have witnessed in the property sector. The key reason is increasing interest rates have a material influence on property prices as they make up the bulk of the costs associated with property investments. Interest costs have less of an influence on business valuations given it’s a smaller proportion of the cost base.

Click here to download the full report.