ABC Business Sales Market Intelligence Report Dec 23 - Flipbook - Page 7
GENERAL
BUSINESS
PRICE
TRENDS
12 Month Rolling Average
Dec-20
Dec-21
Dec-22
Dec-23
Dec-23 vs Dec-22
Dec-23 vs Dec-20
General Business Avge
Price
$678,834
$775,729
$868,102
$851,923
(2%)
25%
12 Month Rolling Average
Mar-23
Jun-23
Sep-23
Dec-23
Dec-23 vs Sep-23
Dec-23 vs Mar-23
General Business Avge
Price
$839,846
$835,547
$831,329
$851,923
2%
1%
Here’s what this table tells us:
•
Overall, the average price for SME businesses ($0-$10m) excluding Hospitality has decreased by 2% for the 12 months to Dec-23.
•
The twelve months to Dec-23 had lower volumes of businesses with values >$2m which contributed to a decrease of 2% for the average business price
when comparing the Dec-22 quarter.
•
The 2% increase when comparing the most recent quarter (Sep-23). This is the first sign of a rebound in the average business price and we expect this
trend to continue into 2024. The data supports our view that business prices peaked in Dec-22 and declined in 2023 with a bounce back expected in
2024.
•
For the past three years we have had a substantial increase in volumes of businesses coming to market with values >$2m which has been driving the
increasing average business price and resulted in a 25% increase from Dec-20 to Dec-23.
Data Source:
The data set used for the average price calculations are all the transactions completed by the ABC Group in the $0-$10m price range. It should be noted the ABC Group has approximately 40%-45%
market share of this segment and hence this data is regarded as accurate and meaningful.
The proportion of NZ businesses in the $0-$10m segment is approximately 89% of all businesses in New Zealand. As per Stats NZ, 189,384 entities have 1 employee or more and 167,790 of these
entities have between 1 - 19 employees; the majority of the businesses with 1-19 employees would be valued between $0-$10m.