Despite the continuing challenges facing businesses in this Covid environment, right now there are more buyers looking for a small-medium sized business than there are sellers in the market.

In fact, in the 6 months (May to October) leading up to the latest lockdown, registered buyer interest for SMEs is up more than 15% compared to the same period last year.

This insight and data comes from ABC Business Sales - the largest broker of SME business sales in New Zealand. ABC Business Sales’ monthly average for signed Confidentiality Agreements (CA’s) since May is also up 16% ( 8024 signed CAs vs 6935 for the same period last year) and website traffic is more than 30,000 users per month which is 34% up on the same period last year.

Managing Director Chris Small says the main driver for this demand is coming from buyers looking for ‘Covid-proof’ businesses.

“The business categories in particular demand with strategic buyers at the moment are those with a limited exposure to the impacts of the Covid lockdown environments. Especially businesses involving elements of wholesale distribution or those ‘WFH’ working from home businesses that can be operated online.”

Other sought after categories include:

• recurring revenue models like service-based IT businesses
• monthly subscription models like property maintenance businesses
• Compliance services businesses (Building permits, any services to H&S requirements)
• Healthcare businesses in particular import/distribution businesses of healthcare products
• Home improvement/renovation-based businesses

Small says their message to any current owner considering listing their business for sale is that buyer demand is definitely there for the right businesses in particular.

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