Bizstats Quarterly Report: Q1 2025
We're pleased to share our latest Bizstats Quarterly Report, offering key insights into New Zealand small and medium business sales for the first quarter of 2025. As the year gets underway, the data reflects a market that is stable overall, with subtle shifts that are worth watching closely.
Solid start for sales volumes
In Q1 2025, Bizstats recorded 100 business sales, down from Q4 2024 but 8% higher than Q1 last year. This seasonal dip is typical after the summer break, and the year-on-year increase suggests that the upward trend in deal flow is holding.
Broker pipelines have softened slightly, but rising enquiry levels point to continued resilience heading into the rest of 2025.
Key takeaway: Year-on-year sales volumes are up 8%, signalling that the broader recovery in deal flow is holding despite a seasonal Q1 dip.
Pricing shows a split story
The mean sale price dipped to $520k, reversing some of the Q4 gains as $1m+ deals fell back to normal levels. However, the median price rose sharply to $341k, buoyed by fewer sub-$200k transactions and a stronger showing in the mid-market.
This divergence points to ongoing demand for well-established, mid-tier SMEs, even as premium deals ease. For more context on how Q4 2024 pricing compared, see our Q4 2024 quarterly report.
SDE multiples level out
The average SDE multiple slipped back slightly to 2.19x, the same figure recorded in Q1 2024. While this is 0.69x below the 2021 peak, the consistency in values over the past year suggests the market is stabilising, though the long-anticipated rebound in valuations has not yet materialised.
Key takeaway: SDE multiples have held steady around 2.2x for a full year, pointing to a market that has found its floor even if a rebound remains elusive.
Longer sales cycles emerging
The median time to sell increased to 6 months, up from an average of 5 months in 2024. This small shift indicates a mild lengthening of deal timelines, even though most secondary indicators remain steady.
- Average SDE: Fell to $213k
- Intangibles-to-price ratio: Eased slightly to 60%
Final thoughts
The Q1 data signals a balanced but cautious market. Buyers remain engaged, particularly in the mid-range, while sellers may need to be prepared for longer timelines and more selective demand at the top end.
We hope this data helps you stay informed as you navigate buying, selling, or advising on SME transactions in New Zealand. To explore our database of recent sales, visit Bizstats.