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BizBuySell Q4 Insight Report Executive Summary by ENLIGN Advisors

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BizBuySell Q4 2023 Insight Report

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01/19/2024

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Welcome to the BizBuySell Fourth 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 BizBuySell Insight Report, we will focus on three key market factors, starting with the number of closed small business transactions since 2017 by quarter. Then, changes in retail sector businesses selling prices. And finally, focus on manufacturing sector performance.

Here, we can see that the second quarter of 2020 experienced the fewest small business transactions in the review period. Fourth quarter 2023 business sales remained increased over fourth quarter 2022 and were consistent with third quarter 2023 levels. This may be due to the "election effect," where buyers and sellers are often waiting to see what happens in November. Generally speaking, the number of completed transactions has steadily improved since 2020.

BizBuySell is reporting that business values in the retail sector fell 12% in the fourth quarter of 2023. Inflation and higher interest rates are likely the cause, leaving sellers of retail businesses with a smaller buying pool, challenged with meeting lenders' higher debt service coverage ratios, due to their limited free cash flow.

When reviewing the manufacturing sector, 2023 was a stand out year for sellers. This chart shows that manufacturing transaction volume rose by 17% over 2022, while manufacturing business prices were also up by 15% over the same period. Median sales prices for manufacturing businesses increased from $700,000 to $797,000.

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Everyone here at ENLIGN Advisors is focused on the trends and data to deliver the highest market value, in the shortest amount of time, with complete confidentiality.®

We hope you enjoyed our analysis of selected topics from the BizBuySell Fourth Quarter 2023 Insight Report.

For the full report and other useful business transaction information, visit our blog at enlign.com

If you're seeking expert guidance in purchasing or selling a business, contact us today for a free, confidential consultation.

Until next time, we wish you the best in your business sale or acquisition project.