Quarterly Market Intelligence Report - SME June 2024

Quarterly Market Intelligence Report - SME June 2024

Share

This is our Fourteenth Market Intelligence Report (1st was Oct-20) and the data shows the following trends in the business sales market:

  • 112 business sales were completed across New Zealand for the Apr 24 - Jun 24 quarter which is 37% ahead of last year (82 completed business sales for Apr 23 - Jun 23). This is the highest ever total for the Apr-Jun quarter based on 37yrs of data.
  • Completed business sales in the past 12mths increased by 5% (386 completed business sales).

The rising number of completed business sales is the direct result of increasing demand for business ownership driven by two distinct groups:

  • New immigrants to New Zealand are preferring to buy a business rather than taking a salary role; the ethnicity of these immigrants is largely Indian, Filipino and Chinese.
  • There is an increasing number of redundant ex-corporate employees entering business ownership with the goal of increasing earnings and reducing the risk of being made redundant again.

 

SUMMARY:

  • The average business sale price has decreased 1% annually to Jun-24. The data clearly shows business prices peaked in Dec-22 and have flattened off in the calendar year of 2023 and the start of 2024.
  • The median multiple paid for businesses in New Zealand has experienced a slight decrease (3%) but the variance between years has not exceeded 5% and we don’t view this latest trend as a material movement.
  • Demand for businesses has had a resurgence in the last twelve months with volumes of confidentiality agreements for the twelve months being the highest on record, with 20,424 potential purchasers entering the market and a 45% increase compared to June-23.
  • The supply of new businesses coming to market remained stable to June-24 and has remained in line with historical levels and has experienced a small increase of 4% compared to June-23.

 

Read our full report below or click here to download 

 

 

Divisions