ABC Business Sales Market Intelligence Report Dec 23 - Flipbook - Page 3
Projections for Business Sales - FY24
This report includes data up to Dec-23 and we have used a combination of this information along with
our insights & experience to predict some key themes and trends for the next twelve months to Dec-24:
• Business Prices to bounce back and start increasing in the first quarter of 2024, we expect a 5%-7% annual increase in
business prices in the next twelve months. The key drivers behind increasing business prices will be:
• The ongoing record immigration which will fuel demand,
• We anticipate a flood of activity that has been on hold due to the last year’s election.
• Investors are now feeling more confident about interest rates having reached their peak.
• Unemployment is expected to be more apparent in FY24 and this will also contribute to higher demand for businesses,
especially in the “buy yourself a job” market.
• Business multiples to remain flat as they have for the past three years; it had been widely expected that multiples would
decline on the back of increasing interest rates and declining valuations in the share market. To date, private business
multiples have not yet materially declined and have held their position and we see this continuing.
• Supply of new businesses coming to market to remain at the higher levels experienced in 2023, 2022 & 2021 with retiring
business owners continuing to be the key contributors.
• In summary we see business sales activity and prices accelerating in 2024, driven by increased immigration, interest rates
forecasted to start declining, sellers & purchasers no longer delaying decision making and increasing unemployment
bringing a new group of buyers to the market. By the start of 2024 we expect a material lift in demand which will result
in a shift back towards a sellers’ market.