Business Market Data: 6 Key Takeaways from Q2 2023
Whether you’re a business owner looking to grow your portfolio or exit your business, the Q3 BizBuySell Insight Report offers both promising and informative news. Despite rate hikes and a fluctuating economy, small business acquisitions are continuing to rise at a steady pace. So, what does this mean for you? Let’s dive into the data and explore 6 key takeaways from the Q2 business market data.
-
Increased Business Transactions
According to the latest BizBuySell Insight Report, business transactions increased by 8% compared to the first quarter of 2023. This means that there are more opportunities to acquire small businesses and expand your reach as an entrepreneur. It’s important to keep an eye on market trends and stay informed about the state of the economy; however, don’t let fear hold you back. With the right strategy and support, you can navigate potential challenges and capitalize on opportunities.
-
Business Market Data Reveals Drop in Sale Prices
One trend to keep in mind is the drop in top sale prices, which have decreased by 14% in recent months. While this may spell bad news for sellers at first glance, a closer look reveals more creativity and negotiation in deal-making. There is a growing trend of prospective buyers entering the marketplace with less access to capital due to rising costs, in such cases, seller financing has become increasingly critical for businesses to close a deal. While it’s not without risks that need to be properly mitigated, seller financing is allowing business owners to earn more in the long run than they would if they accepted cash up front while also allowing entrepreneurs more flexibility in their acquisition process.
-
The Return of Restaurants
Another trend to watch is the resurgence of the restaurant industry. After facing a difficult season during the pandemic for both service and hospitality businesses, these businesses are bouncing back and regaining popularity. According to business market data gathered from Q3 BizBuySell Insight report, restaurant transactions are up by 10.3% in Q2 of 2023 compared to the previous year. Entrepreneurs who specialize in food and beverage may find great opportunities to invest in this industry while owners are in a better position to negotiate a solid deal for their business exit.
-
The Downslide of Brick-and-Mortar Retail
On the other hand, retail businesses are still stumbling and facing challenges in the current market as retail businesses continue to shift online and economic conditions have driven consumers towards cheaper alternatives and less non-essential purchases. Retail business owners need to remain agile and come up with ways to stay competitive in the marketplace. This means that retail businesses often need to look for alternative options such as acquisition, expansion, and diversification of product lines.
-
Baby Boomers Pass the Keys
Baby boomers are continuing to pass the keys to so called “corporate refugees”. This means that there are more small businesses on the market than ever before, and there is a growing population of entrepreneurs looking to acquire them. Many are looking for established companies that have a proven track record, as well as sound business fundamentals. This is often found in an acquisition of a restaurant or other service business which provides a great opportunity for those who want to start a business but don’t have the resources to do so from scratch. Giving a growing number of entrepreneurs a great opportunity to become their own boss and leave behind the corporate lifestyle they desire to exit.
-
Higher Interest Rates Are Here to Stay
Lastly, with every new statistic, the market outlook is becoming more certain—higher interest rates are here to stay, small businesses are in a state of recovery and the food & beverage sector is more than likely leading the way. With this knowledge in hand, it’s important to remember a previously discussed topic concerning flexible alternatives in today’s business market. Business owners seeking to exit their businesses will need to adapt by finding creative solutions to reach a successful business transaction.
About V-AID
With over 611 successful business transactions completed totaling more than $136 million in enterprise value, our team at V-AID has acquired tremendous experience driven by our passion to serve business owners and entrepreneurs seeking the perfect opportunity- giving each transaction the time and attention it deserves. We have expertise in a broad range of industries, from manufacturing to retail, technology to hospitality. Our approach is highly personalized and tailored to the current market conditions – ensuring that their clients get the best deal possible when selling. Listing with us is more than a simple business transaction; it’s a relationship that helps you achieve your goals.
