Sales of businesses are strong due to a tight labour market and retiring boomer business owners. Photo: 123RF
A tight labour market is one of the main drivers behind the demand for businesses - an easier way to gain experienced staff, as well as more customers.
ABC Business Sales' latest Market Intelligence Report indicated average business sale prices and listings were each up 4 percent in 2022 over the year earlier.
"This is being largely driven by an abundance of retiring boomer business owners," ABC managing director Chris Small said, but also because of steady demand.
Despite the economic downturn, he said the business sales market had not experienced significant declines.
He said rising interest rates and inflation had added to costs. However, interest costs were often less than 10 percent of total business costs.
Small said ABC's sales volumes for 12 months to March were down 3 percent, but were holding up well compared with the steep downturn in the residential property market.