Business Sales Surge in New Zealand: Why Now’s the Time to Sell

If you've been considering selling your business but are still sitting on the fence, it's time to take note of the current market trends. Business sales in New Zealand are experiencing significant growth, with a 24% increase in completed transactions compared to last year. This uptick in activity is driven by a strong demand from buyers, and the market conditions are promising for anyone looking to sell.

Demand and Listings on the Rise

For the first five months of 2024, the demand for businesses has reached an all-time high. With over 10,000 Signed Confidentiality Agreements, interest from potential buyers is up 36% compared to the same period last year. This increase in interest is translating into more transactions, providing sellers with the perfect opportunity to capitalise.

At the same time, business listings remain healthy. There have been 320 new businesses listed, which aligns with historical trends. However, it's the heightened buyer activity that’s making the real difference in terms of actual sales.

Why Are So Many Buyers Entering the Market?

Two key factors are driving the surge in buyer interest:

Rising Unemployment: With more people finding themselves out of work, many are choosing to take control of their future by buying a business rather than seeking employment.

New Immigrants: New Zealand’s immigration wave is also playing a crucial role. Many new immigrants are choosing to invest in businesses, seeing it as a pathway to establishing themselves in the country.

These factors have combined to create a pool of motivated buyers who are ready to act, giving sellers an edge.

Business Prices: A Stable Market

While the number of sales has increased, business prices are stabilising. August 2024 saw a slight 0.3% decline in average business prices compared to August 2023, which suggests the market has levelled off after peaking in December 2022. However, the strong demand continues to sustain prices, ensuring sellers are still getting good value.

Why Act Now?

This upward trend in both demand and transactions shows no sign of slowing down in the short term. Waiting could mean missing out on the ideal market conditions. With a 24% increase in completed sales and a growing buyer base, now is the time to list if you're serious about selling your business.

If you’ve been on the fence about selling, take these trends as a sign: the market is strong, buyers are motivated, and conditions are ideal. Don’t wait too long and risk a shift in these favourable conditions.