Each quarter, the Market Pulse Report issues a report revealing information about market conditions. The report is supported by M&A Source and the International Business Brokers Association and focuses on Main Street businesses (with values up to $2MM) and the lower middle market (values between $2MM and $50MM). The data that is analyzed is based on a comprehensive survey of business brokers and M&A advisors.
The research is conducted and then the report is published each quarter to reflect the state of the industry. In this article, we will look at some of the key takeaways of the most recent report and what it reveals about the path ahead for buyers and sellers.
Tracking the Labor Shortage
For the second quarter, the report revealed a variety of interesting information. One massive data point from the report is that the labor shortage continues to be a significant variable for business owners. A staggering 92% of report respondents state that the labor shortage has negatively impacted their business with 54% stating that the shortage has had a “very negative impact” and 35% stating that the impact is “somewhat negative.”
The report further indicated that it is taking about seven months for a business to close. They noted that it takes about six months to a year to sell a well-priced business or a well benchmarked business. The report noted that approximately 60-120 days are spent in the due diligence or execution stage, once the letter of intent has been signed.