ABC Business Sales Quarterly Market Intelligence report for December 2023

I'm pleased to share with you that our latest Dec-23 Business Sales Quarterly Report is out, and it's brimming with insights into New Zealand's business sales landscape. Here's the gist of it:

First off, we've seen a smashing level of interest in business sales. Over the last year, a whopping 16,951 confidentiality agreements were signed, which is 30% more than the previous year. And January-24? Even better, with a 46% jump compared to Jan-23. It's been a record-breaking start!

However, despite this surge in interest, actual business sales dipped by 7% up to Dec-23. It seems buyers are treading more carefully due to economic uncertainties and unresolved price disagreements with sellers.

As for business prices, there's been a slight dip of 5% over the year, but December gave us a bit of hope with a 2% increase from September. We're keeping our fingers crossed for a price rebound in 2024, predicting a 5%-7% rise thanks to several factors:

A boost from ongoing record immigration driving demand.
A wave of mergers and acquisitions expected in early 2024, post-election.
A growing confidence among investors, encouraged by anticipated drops in interest rates.
An uptick in unemployment may paradoxically energise the market, as more folks look to buy themselves a job.
We reckon this report's got some nuggets of gold for anyone keen on the state of business sales in NZ. Dive into the full report for the nitty-gritty on business prices, recent sales, and a new section on business multiples. Cheers, - Gina Stevens- ABC Business Sales.