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ENLIGN's BizBuySell Q4 2022 Insight Report Highlights (Video) Share Blog

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Jeff Snell | 01/31/2023

BBS Q4 2022 Insight ReportWelcome to the BizBuySell Fourth Quarter 2022 Insight Report highlights presented by ENLIGN Advisors. With experienced professionals to serve your main street to lower middle market business transaction requirements nationwide.

Referencing the most recent BizBuySell Insight Report we will focus on three key market indicators. Starting with the number of closed small business transactions since 2017 by quarter.

Then the median business sale prices versus asking prices over the period.

And, finally one of the key financials of sold small businesses.

Here we can see that the second quarter of 2020 experienced significantly fewer small business transactions compared to those going back to 2017 and since.

Some feel the four quarters of decline since the beginning of 2022 can be attributed to macroeconomic concerns including the pandemic, supply chain issues, continuing inflation and the increased cost of capital due to higher interest rates.

In this chart we can see that while sold small business data from BizBuySell, reflects increasing yet somewhat choppy top line revenues compared to cashflow which 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.

Here we can see that the median asking and sale prices increased significantly from 2017 until the beginning of 2022.

It's interesting to note that the median sale price to median asking price ratio remains fairly constant.

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

From everyone here at ENLIGN Advisors we'd like to thank you for watching our analysis of selected topics from the BizBuySell fourth Quarter 2022 Insights Report.

For the full report and other useful business transaction information visit our website at enlign.com or BizBuySell

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

For the full report visit click here: Q4 2022 BizBuySell Insight Report




















This blog was originally written by Jeff Snell, LMCBI, M&AMI, CM&AP, ABI. Jeff is the founder and principal broker of ENLIGN Business Brokers and Advisors (www.enlign.com), headquartered in Raleigh, NC. For over 20 years, ENLIGN has been providing business brokerage and M&A transaction services to main street and lower middle market business owners across the United States via the Atlas Alliance. He can be contacted at (919) 624-1124 or jsnell@enlign.com.