Bizstats

Introducing Bizstats' First Quarterly Report: Q3 2024 We're excited to share some key insights from Q3 2024 on small and medium business sales in New Zealand! This report marks a big milestone for us at Bizstats, and it's packed with data that highlights the trends shaping the business sales landscape. Here's a quick peek at what we found: 📊 Steady Sales Volume: 116 business sales this quarter—keeping pace with Q3 2023, and YTD volumes are now above pre-pandemic levels! 💲 Mixed Sales Price Trends: Median sales price is up to $260k, while the mean price has dipped slightly. Overall, prices are trending positively compared to last year. 📈 Uptick in SDE Multiples: Seller's Discretionary Earnings (SDE) multiple has risen to 2.20x—an encouraging sign of recovery in business valuations. ✨ Intangible Value on the Rise: Intangibles now account for 63% of the average sales price, a big jump from 38% in 2000. If you're curious to dig deeper into the numbers, including detailed charts and analysis, you can download the full Q3 2024 report here: https://lnkd.in/gEDDSKZt Let us know your thoughts and watch out for more analysis coming your way. #Bizstats #QuarterlyReport #BusinessValuation #SME #NewZealand #Q32024 #BusinessTrends

🔍 We're currently working on a quarterly market insights report. It's not quite ready for the world, but in the meantime, we thought we would share what we've uncovered from Q2 2024. Here's a sneak peek at the key insights: 1️⃣ Steady Sales Volume: We recorded 113 business sales in Q2 2024, almost identical to Q2 2023. YTD sales volumes have rebounded to 2021 levels after two years of reduced activity. 2️⃣ Sales Price Recovery: The average sales price jumped to $586k, a significant 16% increase from recent lows. This marks a positive recovery trend in the market. 3️⃣ SDE Multiples Continue to Decline: SDE multiples have dropped by 0.20x (~9%) in the past year, continuing the downward trend we've seen since 2021. We’ll be watching Q3 closely to see if this trend starts to level out. 4️⃣ Industry Variations: Accommodation and Food Services face ongoing pressure, while Retail surprised us with a slight uplift, bringing it back in line with 2023 levels. Stay tuned for our full report in Q3, where we’ll dive deeper into these trends and what they mean for your business sales strategy. 📊 #BusinessSales #SME #MarketTrends #BusinessValuation #BizStats

Which Region Sells the Fastest? At Bizstats, we love a bit of friendly competition! Our latest analysis reveals which regions in New Zealand are the quickest at selling businesses, and the results align closely with population sizes. 🏆 Top Performers: Auckland & Canterbury: Leading the pack, these high-population regions see businesses selling in just 3 months. ⚖️ Middle of the Pack: Bay of Plenty, Waikato, Wellington: With moderate populations, these regions have a balanced market, leading to average sale times of around 4 months. 🐢 Taking Their Time: Gisborne & West Coast: These smaller regions take about 8 months to sell businesses. The smaller buyer pool means longer waits, but patience can pay off. Whether you're in a bustling metropolis or a serene coastal town, understanding your region's market can help you strategize better. For more insights and comprehensive data, visit www.bizstats.co.nz.

How does your business' industry impact its saleability? At Bizstats, we dive deep into data to uncover the nuances of business sales. Our latest analysis highlights how the median time to sell a business varies significantly across industries, influenced by several key factors. 💡 Potential Factors Influencing Time to Sell: Essential Services: Businesses like Waste Services sell quickly due to consistent demand and resilience to economic fluctuations. Low Barriers: Sectors with lower entry barriers, such as Accommodation and Food Services, attract a larger pool of buyers, speeding up the sales process. Established Markets: Industries like Manufacturing have moderate sales times due to their proven profitability and stable customer bases. Skilled Trade: Sectors requiring specific skills, such as Professional Services, take a bit longer to sell, as buyers seek businesses with skilled labour and expertise. Specialised Industry: Highly specialised sectors like Agriculture and Forestry take longer to sell due to the need for specialised knowledge and operations. High Regulation: Industries with stringent regulatory requirements, such as Health Care, have extended sales times because of the complex nature of the businesses. By understanding these factors and their impact on different industries, business owners can better prepare for the sales process and optimise their strategies accordingly. For more detailed insights and comprehensive business sales data, visit our website at www.bizstats.co.nz.

Bigger businesses take longer to sell... This one might have seem obvious, but it's still important to explore the obvious and use data to confirm your assumptions. 📊 What the data shows: Businesses that sell for under $3M take an average of four months to sell. Businesses in the 6M+ range tend to take six months to transact. Interestingly, the businesses in the $4-5M range are an outlier, selling in an average of three months 💡 Why it matters: Higher Valuation = Longer Wait: Generally, the higher the business valuation, the longer it takes to sell. Six months can feel like an eternity when trying to realise your life's work. Strategic Planning for Sellers: Sellers of high-value businesses should allocate additional time for the sales process in their exit strategy. Understanding that it may take longer to find a buyer can influence decisions on when to start the sale process to meet desired timelines. Impact of Economic Cycles: Larger businesses might be more sensitive to economic cycles. Valuation and Pricing Strategies: For businesses in the higher price brackets, realistic pricing strategies become even more critical. Overpricing can significantly extend the time to sell, while competitive pricing aligned with market conditions can attract serious buyers more quickly. For more detailed data on NZ business sales, visit www.bizstats.co.nz.

The Patience Premium Inspired by a section from the book Freakonomics, which discusses how real estate agents tend to achieve slightly higher prices by leaving their homes on the market a bit longer, we’ve discovered some intriguing parallels in the business sales world. In Freakonomics, it was found that real estate agents keep their own homes on the market an average of 10 days longer and achieve sales prices that are 3% higher than those of their clients. Similarly, our findings suggest that business owners might benefit from not rushing the sale and instead aiming for that optimal 3-5 month window. Extending the sales period for a few months more may increase the sales multiple achieved by an average of ~0.15X! For business owners, brokers, and advisors, understanding these trends can be crucial for maximizing the value of a sale. Timing your listing to align with market behaviour can make a meaningful difference in the final sale price. For more insights and detailed business valuation statistics, visit our website at www.bizstats.co.nz #BusinessSales #MarketTrends #BizStats #BusinessStrategy #DataAnalysis #BusinessValuation #Entrepreneurship #Freakonomics #SellingABusiness #SmallBusiness

The decision to sell a business is not an easy one. Often, SME owners have dedicated countless hours to building a business that is an integral part of their life and identity. But once that difficult decision is made, how long can owners typically expect to wait until they can enjoy the fruits of their labour? Obviously, every business is unique, but our analysis of over 20 years of New Zealand SME sales data reveals some fascinating insights: 📊 A Strong Start is Critical: Our data shows that ~50% of businesses sell within the first three months of listing. ⌛ Long Time = Long Shot: The probability of selling your business decreases significantly after the first few months. By the time businesses have been on the market for over a year, very few are sold. In fact, ~90% of businesses sell within the first 12 months. 🔍 Uncharted Territory: What is unknown is the number of businesses that don't sell at all. Some studies have indicated that up to 4 out of 5 SME businesses never sell and instead close. Food for thought for those advising clients through a transaction and managing expectations through what can be a very challenging time. For more data on NZ SME sales take a look at our fresh new site - www.bizstats.co.nz #BusinessSales #SME #BusinessInsights #Entrepreneurship #BusinessValuation

Thinking about selling your business? Remember that timing is everything! We recently came across an article suggesting that the start of the financial year, typically April in New Zealand, is the best time to sell a business based on conventional wisdom. At Bizstats, we prefer a data-driven approach, so we decided to test this claim. The chart below shows the median SDE multiple by month over the last 10 years. And the result? The data clearly shows that the best time to sell your business is from September to November. 📊 Why might this be the optimal period? - Increased economic activity as businesses prepare for the holiday season. - Seasonality of economic optimism and business sentiment. - Time lag between the start of the financial year and the execution of acquisition strategies. Of course, each industry and business has a range of unique factors that drive valuation outcomes. However, it's always worth considering the influence of seasonal trends on your business's valuation. Visit bizstats.co.nz for more insights and data-driven decisions.