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ENLIGN Advisors: BizBuySell Q1 2023 Insight Report Highlights (Video)

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BizBuySell | 04/30/2023

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Welcome to the BizBuySell First Quarter 2023 Insight Report highlights presented by ENLIGN Advisors. Our team of certified, experienced professionals serves your lower middle market to main-street business transaction requirements nationwide.

Referencing the most recent BizBuySell Insight Report, we focus on three key market indicators in our video:

  • Starting with the number of closed small business transactions since 2017 by quarter
  • Then, the key financial indicators of sold small businesses
  • And finally, the median business sale prices versus asking prices over the period

The second quarter of 2020 experienced significantly fewer small business transactions compared to those going back to 2017. However, Q1 2023 did see some improvement over Q4 2022. Some feel the minor rebound is due to sellers being tired of waiting for macroeconomic factors to improve for small and medium businesses.

The median asking and sale prices increased from 2017 until the beginning of 2022, then dipped and rebounded slightly in Q1 2023. It's interesting to note that the median sale price to the median asking price ratio remains fairly constant.

Be careful when analyzing this data as a business buyer or seller. It does not necessarily indicate that businesses were selling for higher multiples, but potentially that more larger-sized businesses transacted during the period.

While sold small business data from BizBuySell reflects increasing, yet somewhat choppy top-line revenues, net profits remained fairly flat since 2017. This could indicate that increased operating costs due to macro-economic factors, along with increasing wages and occupancy costs, are consuming the incremental margins from higher gross sales.

Read the full report here: https://www.bizbuysell.com/insight-report/

If you're seeking expert guidance in the purchase or sale of a business, contact us today for a free, confidential consultation.