Deciding to sell your business is a monumental step, and finding the right business advisor to guide you through the process is equally crucial. When you choose Transworld as your partner, you choose the best in the business. Let's delve into Transworld's small business transaction activity for 2022 and discover what sets our business advisors apart.
A Remarkable Year Transworld has witnessed two consecutive years of remarkable performance. While 2021 was already a record-setting year with a 31% increase in closed deals compared to 2020, 2022 surpassed it by an astonishing 62%. Moreover, the total value of business deals also saw a significant boost, increasing by more than 25%. The monthly breakdown of sold deals in 2022 outperformed every month in 2021, with 10 out of 12 months boasting double-digit increases.
Several key metrics showed substantial growth, including the average deal value (a 27% year-over-year increase), the number of sales listings (up by 24% year-over-year), the median deal value (a remarkable 43% increase compared to 2021), and the average listing price (which saw a 23% year-over-year increase).
Who's Selling and for What Price? The aftermath of the pandemic's early lockdown phase had a significant impact, and the recovery from the challenging year of 2020 continues. Our market report revealed that the baby boomer generation is the primary driving force behind business sales. As they prepare for the next phase of their lives, they are seeking to either offload responsibilities or fund their next entrepreneurial venture.
Another contributing factor to our impressive 2022 performance is the number of buyers willing to pay record prices for well-performing businesses, particularly those that thrived during the pandemic's turbulence. This buyer enthusiasm is evident in the 6% decrease in days on the market, and 2022 also saw an increase in cash transactions. Additionally, owner financing through banks increased, even as interest rates returned to normal levels after the extraordinary lows experienced in previous years.
Finally, our report highlighted the top five most active business segments, which included restaurants, construction, beauty/personal care, automotive, and medical-related businesses, both in terms of closed transactions and deal volume.
Thinking About Selling? If you're considering selling your business in light of this information, here are some pertinent questions to ask a business advisor. First, inquire about how to properly prepare your business for sale. Aniss Cherkaoui at Transworld can assist you in organizing all your business's legal and financial records and can recommend additional experts like accountants or lawyers if needed.
Next, ask Aniss Cherkaoui how he plans to find the right buyer for your business. He will help you package and market your business to reach potential buyers worldwide.
Aniss Cherkaoui will handle these details and more, all while maintaining confidentiality and striving to secure the best possible price for your business. Additionally, he can assist you in planning for your future beyond the sale.
Lastly, consider how inflation and interest rates may impact your options. Despite the recent increase in interest rates by the Fed, rates are returning to normal levels, and the market remains robust. Furthermore, irrespective of interest rates, people are still engaging in historic levels of buying and selling.
If you believe that selling your business is on the horizon, consider Aniss Cherkaoui. He can guide you through every step of the process, from start to finish. To get an estimate of your business's potential value, explore our business valuation calculator, or learn more about our unique approach by visiting my website. Your business's next chapter begins with Transworld.
