The business-for-sale market has been buoyed by steady demand in the service and
manufacturing sectors, which have been more successful in navigating rising costs and
changes in consumer spending habits.
Service businesses that sold in Q2 showed a 17% year-over-year jump in the median
sale price, with the median asking price up 14%, respectively. Service businesses also
showed stronger margins, with median cash flow up 3% year-over-year while median
revenue remained unchanged. Overall, the number of closed transactions dropped 5%,
however, activity was strong in entertainment, recreation, medical practices, and
cleaning businesses.
At the same time, the number of manufacturing businesses sold in Q2 soared 35%
since last year, with the median sale price up 31% and the median asking price up 49%,
respectively. Manufacturing businesses that sold also showed exceptionally strong
earnings, with median cash flow up 12% and median revenue up 36%. While the
manufacturing sector is diverse and highly specialized, buyers primarily focused on
investing in the manufacturing of food products, machinery, and signage.
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