After a record year in 2016, 2017 seems to be starting off with mixed results. Seller activity for small businesses under $500k is up, but new businesses opportunities in the $1M to $5M range is flat or down. This puts more upwards pressure on values as demand far exceeds supply.
Business owners seem to be taking a wait and see approach. There is an expectation of continued interest rate increases and with a stock market hovering at a historic high and energy prices still low, even a small system shock could negatively impact the economy. Banks and financing sources are still aggressively pursuing deals to fund.
What’s hot & what’s not. Professional/commercial service businesses, tech, SAS and high tech manufacturing are in demand. We are seeing a hold on healthcare related businesses as uncertainty around government policy continues. Restaurants are selling slower with seasonal worker shortages common in both Maine and New Hampshire. Larger trades businesses are receiving more interest after lackluster demand for over 8 years.