Bizstats Quarterly Report: Q4 2024
As we wrap up 2024, we are excited to share our latest Bizstats Quarterly Report, bringing you key insights into small and medium business sales across New Zealand. Last quarter's data presents a mixed picture, with some indicators pointing to a strengthening market while others suggest ongoing challenges.
Sales volume takes a step back
Q4 2024 saw 100 business sales, a decline from Q3 and a drop from the same period last year. Despite reported strong buyer enquiry, deals have been harder to close, indicating some friction in the market.
However, annual sales for 2024 were the highest since the COVID-19 pandemic, reinforcing a longer-term recovery. For how these trends first started building, see our Q3 2024 quarterly report.
Key takeaway: While quarterly volumes dipped, full-year 2024 sales were the highest since the pandemic, confirming a broader recovery trajectory.
Sales prices recover
While sales volumes softened, prices moved upward. The mean sales price rose to $542k, driven by a higher proportion of transactions exceeding $1 million. The median price also increased to $295k, aligning 2024 prices with 2023 levels and showing some resilience in the market.
SDE multiples strengthen
After a prolonged period of decline, SDE multiples have continued their upward trend, rising to 2.32x this quarter. While valuations still have room to recover, this is a promising sign for business owners considering an exit.
Key takeaway: SDE multiples rising to 2.32x marks a continued recovery and a positive signal for sellers weighing their exit timing.
Longer time to sell
Businesses took a median of 6 months to sell in Q4, slightly up from previous quarters. While sales are still happening, buyers appear to be taking longer to commit, which could influence deal-making strategies heading into 2025.
Final thoughts
The Q4 data sends mixed signals — business valuations and prices are recovering, but deals are taking longer to complete.
- Sellers: May benefit from stronger pricing but should be prepared for a longer sales process.
- Buyers: Face firmer valuations, meaning less room for negotiation compared to earlier in the year.
- Brokers and advisors: Should help clients manage expectations on deal timelines as market conditions evolve.
We hope these insights help you navigate your business decisions, and we look forward to keeping you updated each quarter. To explore our database of NZ SME transactions, visit Bizstats.