Revealing Trends, Impact of Rate Hikes, and Valuable Insights for Business Owners

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Sep 06, 2023

BizBuySell, a leading online marketplace for buying and selling businesses, in the insight report summarizing the growth and trends of the market in 2022 highlights the impact of lower sales prices and rate hikes on the value of businesses in recent months. For those interested in reading the full report, it can be found at https://www.bizbuysell.com/insight-report/#reportArchive.

Key Takeaways from the Report

Overall, buyers currently have some leverage when it comes to negotiating prices for businesses on the market. In comparison to 2021, there was a 4.7% increase in closed transactions in 2022, and a significant 19% gain compared to pre-pandemic levels in 2019. However, sales momentum slowed down in the second half of the year due to inflation and interest rate increases.

When looking specifically at BizBuySell's data, the number of transactions recorded in 2022 is comparable to those in 2021. The first and second quarters saw a strong increase of 27% and 14% respectively, but there was a decline of 2% and then 12.7% in the second half of the year.

Concerns Among Business Owners

The report also highlights that many business owners are worried about the impact of rate hikes and inflation. A majority (53%) expressed that rate hikes are negatively affecting their businesses. Additionally, rising SBA loan rates are a concern for owners who rely on lines of credit. Supply chain issues continue to be a challenge for many businesses as well.

Looking Ahead to 2023

The main takeaway from 2022 is that there was steady but slow growth in the market. As we enter 2023, interest rate hikes and inflation are expected to be key factors influencing sales and growth.

Importance of Having an Exit Plan

According to BizBuySell's data, only 53% of business owners have an exit plan in place, and just 58% of owners know the value of their businesses. If you are a business owner looking to determine the worth of your business or develop an exit plan, it is recommended to consult a business broker or M&A advisor for assistance.

To read the full BizBuySell Insight Report for 2022 and gain more valuable insights, visit their website at https://www.bizbuysell.com/insight-report/#reportArchive.

Don't miss out on the opportunity to stay informed about the latest trends and developments in the business market. Drop us an email if you'd like to discuss a valuation for your business.

The post-BizBuySell Insight Report for 2022 appeared first on Deal Studio – Automate, accelerate, and elevate your deal-making.