Selling your business is a big decision. Equally important is finding the right business advisor to help navigate the process. Results from the latest Market Report show that choosing a broker form a firm like Transworld can help you meet your business goals.

Let’s dive into Transworld’s small business transaction activity for 2022 and learn more about what sets Transworld’s business advisors apart.

Another historic year

It’s been two years of historic performance levels for Transworld. Not only was 2021 record-setting with 31% more deals closed versus 2020, but 2022 surpassed it by 62%. The total deal value of businesses increased, too, by more than 25%. The 2022 monthly breakdown of sold deals topped every month in 2021, with 10 of the 12 months showing double-digit increases.

In all, a host of key metrics were up, from the average deal value (27% YOY increase) to the number of sales listings (up 24% YOY), from the median deal value (43% above 2021) to the average listing price (a 23% increase YOY).

Who’s selling? And for how much?

The impact of the pandemic’s early lock down phase was significant, and the recovery from 2020 continues. One insight the market report revealed was that the primary driver of business sales is baby boomers.

This demographic is preparing for their next stage in life and looking to either shed responsibilities or fund their next entrepreneurial endeavor.

Another factor fueling the impressive 2022 performance is the number of buyers paying record prices for well-performing businesses. Companies that did well and thrived during the turbulence of the pandemic are especially appealing. Buyer motivation was evident in the decrease in days on the market by 6%, with 2022 also showing an increase in cash deals. Also of note was an increase in owner financing through banks, even with the rise in interest rates back to normal levels from the extraordinary lows experienced in previous years.

The report found the top five most active business segments were restaurants, construction, beauty/personal care, automotive and medical-related businesses, both by closed transactions and deal volume.

Interested in selling?

If all this information leads you to think the time might be right for you to sell your business, what are the most pertinent questions you should ask a business advisor?

First, you can ask how to prepare your business for sale properly. Business advisors can help you get all your business’s legal or financial records in order and recommend any additional experts, such as accountants or lawyers, you may need.

Next, ask your business broker how they will find the right buyer for your business. They will help you package and market your business throughout the world to find the best buyer.

An experienced advisor will help you handle these details and more, all while working to keep the sale confidential and doing all they can to get the best price.

Consider how inflation and interest rates will affect your options. Even with the recent interest rate increase by the Fed, the rates are returning to a normal level, and the market continues to remain strong. What’s more, regardless of the interest rates, people are still selling and buying at historic numbers.

If you think selling is on the horizon for your business, consider working with a business advisor. They can help guide you through the process from start to finish.

Editor's note: Ashley Kelsey is a Business Broker at Transworld Business Advisors of Eastern North Carolina. She can be reached at 910-302-6447 or email akelsey@tworld.com.