The Q2 2022 Market Pulse Survey Report indicates that for those purchasing businesses for less than $500K, Restaurants followed by the Personal Service businesses led the types of businesses purchased. In the $500K-$2MM purchase price, Business Service industries were the top choices.
In the $2MM-$50MM range, the Construction and Engineering industries led the types of businesses purchased.
If you own a business in one of these top market sectors, note that Buyers are plentiful and seeking to purchase in these market sectors. Now may be a great time to transition to that next phase.
To start planning, determine how much money you will need to receive for your business to be able to live the life you want afterward. Think about these questions: What do I have now, and what do I need? Most people do not have their “number” figured out, but with a little work, you can get there quickly. Get some professional help from a wealth manager or financial planner to fine-tune that number.
We are here to help when you need to determine the marketability and approximate value of your business. For more information, please contact Nathan Hughes, CBI, CCIM, at [email protected].
About the Market Pulse Report
The Market Pulse Report compares conditions for businesses being sold on Main Street (values of $0-$2MM) to those being sold on the Lower Middle Market (values of $2MM-$50MM). The Q2 2022 survey was conducted between July 1-17, 2022 and was completed by 3,551 business brokers and M&A advisors. Respondents completed 299 transactions this quarter. This is the 41st edition of this quarterly report.
About International Business Brokers Association (IBBA) and the M&A Source
Founded in 1983, IBBA is the largest non-profit association specifically formed to meet the needs of people and firms engaged in various aspects of business brokerage and mergers and acquisitions. For more information visit www.ibba.org or follow the IBBA on Facebook, Twitter and LinkedIn.
Founded in 1991, the M&A Source promotes professional development of merger and acquisition professionals so that they may better serve their clients’ needs and maximize public awareness of professional intermediary services available for middle market merger and acquisition transactions. For more information visit www.masource.org or follow the M&A Source on Facebook, LinkedIn and Twitter.
Know Your Buyer
<$500,000: Buyers in this sector were:
• First time buyer (41%), serial entrepreneurs (38%)
• Motivated to buy a job (41%), gain a horizontal add-on (26%)
• Located within 20 miles (70%) or more than 100 miles (16%) of the seller’s location
<$500K-$1MM: Buyers in this sector were:
• First time buyers (38%), serial entrepreneurs (30%), or existing companies (25%)
• Motivated to buy a job (41%), gain a horizontal add-on (18%), gain a better ROI than other investment (16%), gain a vertical add-on (16%)
• Located within 20 miles (48%) or within 50 miles (18%) of the seller’s location