The “Baby Boomer” exit has been a major factor in supplying the marketplace with a relatively large number of businesses listed for sale over the 2021/22 financial year. If this had not been the case, given strengthening purchaser demand, it is likely that business sale prices/value multiples would have increased substantially – similar to what happened in the property market.
Australian Economy
With economic headwinds of high interests/mortgage rates and higher inflation, it would be logical to assume that business confidence may be low. However, some measures of confidence, such as the level of private business investment, have actually increased. Overall business conditions, whilst having softened since highs in 2021 and the early part of 2022, remain at well above long-term averages. It would appear that the small business sector in Australia has not yet suffered the significant declines that some economic forecasters have predicted over the past 6 to 12 months. However, going forward there remains several main factors impacting the economy, which the small business sector will have to navigate.
Main factors impacting small business at the current time include:
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