Small business acquisitions leveled off in 2023 as interest rates climbed, but 2024 looks better
Advertisement
Read this article for free:
or
Already have an account? Log in here »
To continue reading, please subscribe:
Digital Subscription
One year of digital access for only $205*
- Enjoy unlimited reading on winnipegfreepress.com
- Read the E-Edition, our digital replica newspaper
- Access News Break, our award-winning app
- Play interactive puzzles
*First annual payment billed as $205.00 + GST for one year. This annual subscription will automatically renew at $233.00 + GST every 52 weeks (10% off the regular annual price of $259.35). Offer available to new and qualified returning subscribers only. Cancel any time.
To continue reading, please subscribe:
Add Free Press access to your Brandon Sun subscription for only an additional
$1 for the first 4 weeks*
- Enjoy unlimited reading on winnipegfreepress.com
- Read the E-Edition, our digital replica newspaper
- Access News Break, our award-winning app
- Play interactive puzzles
*Your next Brandon Sun subscription payment will increase by $1.00 and you will be charged $17.95 plus GST for four weeks. After four weeks, your payment will increase to $24.95 plus GST every four weeks.
Read unlimited articles for free today:
or
Already have an account? Log in here »
Hey there, time traveller!
This article was published 06/02/2024 (961 days ago), so information in it may no longer be current.
NEW YORK (AP) — Is it a good time to sell your small business — or maybe buy one?
Small business acquisitions were up and down in 2023, reflecting the increase in interest rates that threw a chill into the market.
But a strong fourth quarter, helped by a signal from the Federal Reserve that it was done raising interest rates, could bode well for 2024.
Overall, the number of small business acquisitions was largely unchanged in 2023, according to business marketplace BizBuySell’s Insight Data, which tracks and analyzes U.S. business-for-sale transactions.
A total of 9,093 businesses were reported sold on BizBuySell in 2023, up less than 1% from the 9,054 businesses sold in 2022. The value of the deals rose to $6.5 billion from $6.3 billion. Quarterly results show stark changes in the market: Transactions fell 10% in the first quarter, remained flat in the second and third quarters as interest rate hikes slowed, and rose 12% in the fourth quarter, amid news of cooling inflation and potential rate cuts.
So it might be a good time to buy — as long as the business seems solid.
“If the business has a good return on the investment and ability to service debt, it’s likely a good time to buy, regardless of rates,” said Ken Bohenek, business intermediary at Murphy Business Sales in Northern Idaho. “Then, as rates soften, you’ll likely be in a much better cash flow position than those who bought when money was cheap, and rates quickly escalated.”