The stats are in and it appears that pandemic-proof businesses are in high demand. According to BizBuySell’s confidence survey on small business, there is demand for pandemic-proof businesses is on the rise. The survey shows buyer confidence has reached a new record high of 60 compared to 53 a year ago.
Over 2,300 small business owners were polled in the survey. Of that group, 57% believe they can buy a business for a better value than last year. This is a dramatic turn as only 17% believed the same when asked last year. The sentiment is reflected in data from businesses for sale transactions as opportunity seekers and business owners are well-positioned to profit or forced to exit.
Here are some more stats from the survey:
- Owner confidence fell to a low of 45%, down from 52% in 2019 brought about concerns over business value
- Some 68% of business owners believe they would have received a better value if they had sold their business last year – this is up from 37% in 2019
- Some 71% of business owners point to the impact of the pandemic for the lower values
- Only 20% of businesses are outperforming the period prior to the pandemic.
- The average asking price of businesses currently is $299,000, which is 4.9% higher than a year ago and slightly higher than the $296,000 figure from last quarter.