As seller confidence drops, buyer confidence increases.
Confidence among small business owners dropped to a score of 46 in 2022, down from 57 in 2021, according to BizBuySell’s Business for Sale Confidence Index, which measures the sentiments of over 3,000 business owners and buyers. A score of 46 falls within a point of 2020’s record low of 45, when owners were acutely concerned over the pandemic, a first-time drop below 52.
As was the case in 2020, owner concern is centered on business value. In fact, the majority (59%) attribute economic uncertainty as the top factor for decreased business values. Of those planning on selling their business, 79% are concerned about entering a recession within the next year, and over a third (35%) say this would motivate them to sell their business sooner. However, (54%) would not discount their sale price due to recession concerns.BizBuySell Insight Report 10-19-2022