- By Daren Leng, Senior Business Broker, Howick
New Zealand’s business sales market is gaining momentum, presenting exciting opportunities for owners.
Our 15th Market Intelligence Report, covering the 12 months to September, 2024, reveals an 8 per cent increase in sales volumes, driven by a renewed interest in business ownership.
But what does this mean for those contemplating a sale?
After a downturn that began in December, 2022, average business sale prices have rebounded, rising by 5 per cent to $874,000.
This upward trend signals a resurgence of confidence in the market.
Last week’s 50 basis point drop in interest rates to 4.75 per cent is making finance more accessible, and as rates continue to fall, buyer confidence is expected to strengthen further.
Compounding this positive outlook is the record buyer demand.
A staggering 22,404 potential purchasers entered the market in the past year, a remarkable 45 per cent increase from the previous year.
With more buyers competing for a relatively stable supply of businesses, up only 2 per cent, this environment presents a unique opportunity for sellers.
For business owners, understanding these market dynamics is crucial.
Effective preparation, including accurate pricing, strategic market positioning, and optimal timing, will be essential to maximise your sale in this increasingly favourable climate.
As you navigate this shifting landscape, consider the key question: Is your business ready to attract the right buyer?
- Daren Leng, Senior Business Broker, phone 021 0278 6045 or
email darenl@abcbusiness.co.nz
