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ENLIGN Advisors: BizBuySell Q2 2023 Insight Report Highlights (Video)

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BizBuySell | 07/31/2023

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Welcome to the Biz-Buy-Sell Second Quarter 2023 Insight Report "highlights" presented by ENLIGN Advisors! with experienced professionals serving your lower middle market to main-street business transaction requirements nationwide!

Referencing the most recent Biz-Buy-Sell Insight Report, we will focus on three key market factors.

  • Starting with the number of closed small business transactions since 2017 by quarter.
  • Then, the increased use of seller financing and its benefits
  • And, finally, the median business sale prices versus asking prices over the period.

Here, you can see that the second quarter of 2020 experienced significantly fewer small business transactions compared to those going back to 2017. However, Q2 of 2023 did see some improvement again over Q1 and Q4 of 2022. Some feel the increase is due to more buyers and sellers utilizing a component of seller financing.

BizBuySell is reporting that business buyers and sellers are increasingly utilizing a component of seller financing to bridge the price gap in part caused by higher interest rates. Some business sellers are willing to subsidize a portion of the incremental interest expense and receive higher interest payments and tax advantages from deferring the income.

In this chart, we can see that compared to Q1 of this year, asking prices are down on average, with actual reported sales prices at their widest margins from asking prices since 2017.

From everyone here at ENLIGN Advisors, we'd like to thank you for watching our analysis of selected topics from the BizBuySell second Quarter 2023 Insights Report. For the full report and other useful business transaction information, visit our website at enlign.com If you're seeking expert guidance in the purchase or sale of a business, contact us today for a free consultation. Until next time we wish you the best in your business sale or acquisition project.