Feelings do not always reflect reality.
There have been a lot of negative headlines and rate increases over the past 18 months. As a result, many potential business sellers are feeling that it’s not a good time to sell. In fact, seller sentiment has remained at a decade-low since Q4 2022. The result is that there is a very low supply of high-quality businesses for sale.
In stark contrast, buyers are very aggressively seeking quality businesses. Calder Capital has reported significant interest from buyers throughout Q1 of 2023. Similarly, BizBuySell, shared that their online marketplace has experienced a significant surge in online traffic, with monthly visits increasing by 27% compared to the previous year.
The Calder team would like to share some statistics from our internal reporting to provide a sense of what is happening in the market due to high demand and low supply.
These are current clients that are selling their businesses and have accepted or are getting close to accepting an offer. Links to these sellers’ profiles are included in their headings.
Metal Finishing Company
Buyers requesting information: 120
Offers submitted: 12
Offers higher than valuation range: 3
Sheet Metal Fabricator
Buyers requesting information: 117
Offers submitted: 9
Offers higher than valuation range: 4
Commercial/Industrial Electrical Contractor
Buyers requesting information: 94
Offers submitted: 10
Offers higher than valuation range: 2
Rubber Product Manufacturer
Buyers requesting information: 255
Offers submitted: 8
Offers higher than valuation range: 3
Many sellers are receiving significant attention and competition resulting in premium valuations.
While we cannot predict the future, our data continues to support this narrative.
Please contact Calder if you have an interest in a business valuation, selling a business, or acquiring a business.