2023 Main Street Market Report

Selling your business is a significant decision, and finding the right business advisor is equally important. When you choose Transworld Business Advisors North Dallas/Fort Worth, our latest Market Report demonstrates that you are selecting the best option. Let's explore Transworld's small business transaction activity in 2022 and discover what sets our business advisors apart.

Another exceptional year

Transworld has experienced two years of extraordinary performance levels. Not only did we achieve record-breaking results in 2021, closing 31% more deals than in 2020, but 2022 surpassed those achievements by 62%. The total value of business deals also increased by over 25%. In terms of monthly breakdown, sold deals in 2022 exceeded every month in 2021, with 10 out of the 12 months displaying double-digit growth.

Numerous key metrics witnessed significant improvements, including the average deal value (27% increase year-over-year), the number of sales listings (up 24% year-over-year), the median deal value (43% higher than 2021), and the average listing price (a 23% increase year-over-year).

Who is selling, and at what price?

The impact of the early lockdown phase during the pandemic was notable, and the recovery from 2020 is ongoing. The market report reveals that baby boomers are the primary drivers of business sales. This demographic is preparing for their next life stage and seeking to either relieve themselves of responsibilities or fund their next entrepreneurial endeavor.

Another factor contributing to the impressive performance in 2022 is the number of buyers paying record prices for well-performing businesses. Companies that thrived during the turbulence of the pandemic are particularly attractive. Buyer motivation is evident in the 6% decrease in days on the market, along with an increase in cash deals in 2022. Furthermore, owner financing through banks saw an increase, despite the interest rates returning to normal levels after experiencing historic lows in previous years.

Additionally, the report identifies the top five most active business segments in terms of closed transactions and deal volume: restaurants, construction, beauty/personal care, automotive, and medical-related businesses.

Considering selling?

If this information leads you to believe that it might be the right time to sell your business, what are the most important questions to ask a business advisor? First and foremost, you can inquire about how to properly prepare your business for sale. The experts at Transworld can assist you in organizing all your business's legal and financial records and recommend any additional professionals, such as accountants or lawyers, that you may require.

Next, ask your business broker how they will find the ideal buyer for your business. They will assist you in packaging and marketing your business globally to attract the best buyer.

An experienced advisor will handle these details and more while ensuring the sale remains confidential and striving to secure the best price. Finally, a Transworld business advisor can also assist you in planning for your future steps.

Lastly, it's crucial to consider how inflation and interest rates will impact your options. As mentioned earlier, despite the recent interest rate increase by the Fed, rates are returning to normal levels, and the market remains robust. Furthermore, regardless of interest rates, people continue to buy and sell businesses at historic levels.

If you believe that selling your business is on the horizon, consider partnering with the experts at Transworld. We can guide you through the entire process, from start to finish. Explore our business valuation calculator to get an estimate of your business's worth or learn more about Transworld's distinctive approach by visiting our website.