ABC Business Sales Market Intelligence Report Dec 23 - Flipbook - Page 8
HOSPITALITY
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
$186,524
$274,352
$249,296
$236,964
(5%)
27%
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
$222,356
$223,124
$248,956
$236,964
(5%)
7%
Here’s what this table tells us:
•
The average price for Hospitality businesses ($0-$10m) has seen a 5% decrease for the 12 months to Dec-23.
•
We are now seeing higher volumes of hospitality businesses selling but most of these transactions are in the below $500k price range, and this is driven
by new migrants being the purchasers with reduced budgets.
•
Overall, we can be confident that hospitality business prices have increased during the last three years as that is very clearly indicated by the data which
shows a 27% increase over that period.
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.