Sellers Command Record Prices, Seller Confidence Grows as Buyers Compete for Deals
The number of businesses that were acquired continued to rebound with the number of closed transactions in the third quarter up 17% over the previous quarter and up over 11% year-over-year. That’s according to BizBuySell’s Q3 Insight Report, which tracks and analyzes U.S. business-for-sale transactions.
Sellers are returning to the market, feeling more confident they can receive a good price and less willing to wait as the effects of the COVID pandemic linger on, including supply chain disruptions and staffing shortages.
Seller confidence index increased to 57 in 2021, up from 45 in 2020, which is the highest mark since the high of 58 in 2018. Of those surveyed, 49% of business owners felt they could receive a higher sale price today compared to a year ago, and 46% said the top factor that influenced their decision to sell was improved sales and revenue.
“The number of active sellers in the market is still lower than in previous years, but we have definitely seen an uptick in new clients since 2020. The shortage of good companies for sale, combined with low interest rates and a stock market at all-time highs has driven up the value of the companies that are currently for sale,” said Richard Jackim, Managing Partner of Jackim Woods & Co.