This is our Twelfth Market Intelligence Report (1st was Oct-20) and the data shows the following trends in the business sales market:
• Completed business sales across New Zealand have decreased in the past 12mths by 7%; this has been the result of cautious purchasers delaying decisions and valuation gaps not being resolved between purchasers & vendors.
• The average business sale price has decreased 2% annually to Dec-23. The data clearly shows business prices peaked in Dec-22 and have flattened off in the calendar year of 2023.
• The median multiple paid for businesses in New Zealand has experienced a slight increase (1%) but the variance between years has not exceeded 5% and we don’t view this latest trend as a material movement.
• Demand for businesses has had a resurgence in the last twelve months with volumes of confidentiality agreements for 2023 being the highest on record, with 16,951 potential purchasers entering the market and a 30% increase compared to 2022.
• Supply of new businesses coming to market has remained stable to Dec-23 and has remained in line with historical levels and is only experiencing a small decrease of 4% compared to Dec-22.
• The data shows the average business price has increased by 25% over the past three years, the key driver has been the 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.
• Our data clearly shows that multiples have remained flat and are not contributing to higher business prices.
Click below to view the full report. ⬇️