Wondering if businesses are selling currently? Short answer: YES.
The headlines are scary lately, we get it. Inflation, financial markets, supply chain, labor / staffing, Covid, Asian giant hornets (what else, right?!).
Expanding on the short answer – quality businesses, priced appropriately, are selling. I just closed a water damage business and have an ecommerce / craft business closing on 6/27.
As for data and insight into the current market – good news – you found it! The Q1 Market Pulse Report from the IBBA was just released – you arrived at the right place!
At Washington Business Brokers we are proud, long-running members of the International Business Brokers Association. It is the premier organization for business brokers and transaction experts. For context, there are ~2,000 members..nationally. We are a small tribe of experts.
The IBBA conducts a quarterly survey on private business sales, it has insight by transaction size into market multiples, deal structure, time to close, and commentary on the market from hundreds of Business Brokers and M&A Intermediaries. This report, combined with BVR’s quarterly DealStats Index that we also participate in and share, provides an incredibly rich amount of data and market insight.
The Q1 2022 Market Pulse report on business sales is out, read on for insight into:
Market Multiples.
Deal Structure (mix of cash / financing / contingent payments aka earn-out’s).
Industries seeing the most deal activity.
Who is buying.
Due diligence considerations for buyers and sellers (new add to the report – great intel here).
Buyer expectations on seller transition & non-compete periods, as well as post-deal seller consulting agreements (another new add – rich data for prospective sellers).
Time to close.
Commentary on the market from deal experts.
Check it out:
Are you a business owner and unsure where to start? Read our 2022 guide to selling your business and summary of our most popular resources for owners from 2021.
Want to discuss your business, the sale process, valuations, or the market?
Reach out for a confidential, no commitment chat. You will come away with knowledge and concrete steps to immediately improve the value of your business (whenever you choose to explore the sale process).
If you would like to learn more on valuing a business, these are fantastic resources:
What Is My Business Worth? Part 1 | The Deal Board Podcast
What is My Business Worth? Part 2 | The Deal Board Podcast
Business buy-sell “facts/musts” – 10 for buyers and 10 for sellers (buzzsprout.com)
Hopefully we have shed some light on the market and sale process with the quarterly report.
That is it for today – more to come in a future post. Please forward or share this content if you find it valuable. As always, thank you for reading!
At Washington Business Brokers we are experts in valuation, optimizing a business for sale, buyer identification and qualification, negotiation, deal structuring, and closing.
We do not sell you on selling your business or buying one. Instead, we listen, provide options and expertise, and ultimately partner with you to accomplish your goals.
If you would like to better understand the value of your business or learn more about the process of confidentially selling:
call or text 937.344.8750
email [email protected]
or schedule time for an exploratory, free chat here
Conversations are always confidential and there is no commitment. We will be ready when you are. Put our team to work for you!