Thinking of selling your business in 2022? Give yourself an edge—read up on what we learned in 2021.
2021 was a year of unpredictable firsts for business owners and entrepreneurs. Nothing we learned in 2020 could have prepared America for pandemic shutdowns. Many small operations had to quickly pivot, improvise, and adapt to a world that changed overnight.
But now, with a swiftly recovering economy and growing consumer demand, we have the room (and the data) to make educated predictions about 2022. Nothing is ever certain—but after a successful year of serving clients, making sales, and gathering information, Transworld is pleased to share our 2022 forecast for trends in business transactions and acquisitions.
Read on to find out what we learned and start planning your next steps with confidence.
Looking at 2021 to Predict 2022
To kick things off, let’s briefly revisit the business sales trends that characterized 2021. (Don’t worry, we won’t stay long.)
· Sector-specific growth. Restaurants, retailers, tourism, events, and healthcare providers saw considerable surges after reopening. Consumers were eager to get back out into the world.
· More businesses sold. In 2021, business owners that sold their operations found sellers more quickly than ever before. Their businesses also sold for higher prices than in recent history.
· Ecommerce got hotter. Of course, e-commerce has been popular…but during the pandemic, when brick-and-mortar stores were closed, online shopping grew even more popular.
These were more than just trends—they were history in the making.
At Transworld, we witnessed it firsthand. We knew we were experiencing something unprecedented—and we paid close attention so we could pass the benefits off to entrepreneurs like you. Our brokers worked with countless clients who took advantage of surging business sales and collected tidy profits.
These experiences helped us extrapolate and make predictions for 2022:
· Demand will continue to increase for small businesses. In 2021, the average price of businesses grew by almost 40%. Sellers will be able to net more than usual if they plan their exits now.
· Inflation and supply chain obstacles will lessen over time. Inflation may affect profits in the short run, but supply chain issues and rising costs should dissipate However, if the cost of goods keeps increasing and businesses keep being squeezed, more will come up for sale.
· Ecommerce and automation will become much more common. With labor costs rising, many business owners are updating their operations to depend less on human employees.
In short, business was good in 2021—and business will continue to be good in 2022. If selling has ever crossed your mind, now is the time to think more seriously about your plans. Our brokers have helped many successful entrepreneurs sell their operations. Will this be the year you join their ranks?
What You Can (and Should) Do Now
No one can tell you when to sell your business. What we can do is help you look at the facts and make an informed decision based on what we’ve learned. This is Transworld’s specialty: it’s the reason we’re trusted by entrepreneurs throughout the world. Contact us to discuss your next steps in detail.
Our brokers can help you stay advised with expert knowledge on the latest market trends. We watch other sellers and buyers in your industry to help you stay up to date on changes as they occur.
In the meantime, always keep running your business. Never pause operations while you search for buyers, entertain offers, or explore other ventures. Buyers want to get what your business will earn in the future, and if your business’s profitability drops before it’s sold, you may have some explaining to do and could see a negative price adjustment.
Hungry for more? Check out the latest episode of The Deal Board—"Looking for a Business?”—to find out what the brokers and brains at Transworld headquarters have to say about current market conditions.