As we enter the new year, it’s a good time to take a look at the business sales market and what we can expect in 2023. Here are some trends to keep an eye on:
- Strong demand for businesses
There continues to be a strong demand for businesses, as investors seek out opportunities for growth and diversification. This is especially true for businesses in industries such as technology, healthcare, and e-commerce, which have seen increased demand due to the pandemic.
- Increase in valuations
With high demand comes an increase in valuations. Sellers can expect to receive higher offers for their businesses, and buyers will need to be prepared to pay a premium. This is especially true for businesses with strong financials and a solid growth trajectory.
- More competition among buyers
As the market heats up, there will be more competition among buyers for desirable businesses. Buyers will need to move quickly and be prepared to make strong offers in order to secure a deal. This means having financing in place and being able to act fast when the right opportunity arises.
- Continued use of technology
Technology will continue to play a big role in the business sales process. Virtual meetings and due diligence have become the norm, and buyers and sellers will need to be comfortable with using technology to communicate and share information.
- Rise of strategic buyers
Strategic buyers, such as other businesses in the same industry or private equity firms, will continue to be active in the market. These buyers are looking for synergies and opportunities to grow their existing businesses through acquisitions.
Overall, 2023 looks to be another strong year for the business sales market. Sellers can expect to receive high valuations and buyers will need to be prepared to move quickly and compete with other buyers. As always, working with a trusted business broker can help you navigate the market and find the right opportunity for your needs.