2022 was a tough year for businesses. Between the lasting effects of the pandemic, rocketing energy bills and the cost of living crisis, we came into the festive season with plenty of reasons to feel blue. But now we’re only a few weeks into January, and things are looking promising. There are plenty of reasons to feel good about the economy, and business owners should feel reassured that the challenges of 2022 are in the rearview mirror. And if you’re looking to sell your business, here are five reasons to be optimistic about a business sale in 2023!
Inflation has Peaked
Autumn felt like every week we were waiting with baited breath for the Bank of England to announce another rise in interest rates, to tackle inflation. Now, Bank Governor Andrew Bailey is confident we’ll peak at 4.5%, and inflation should fall fast this year. A key factor for inflation has been energy prices. Thankfully a warm winter meant global reserves remained strong, and falling wholesale costs mean that we should all see our bills drop in 2023. Prices will stay high, but we’re through the worst of it.
An end to Covid Complications
Covid brought a lot of challenges to businesses across the world, both economic and practical. While the war in Ukraine exacerbated the problem, energy costs were already rising during the pandemic. Thankfully these are being reined in now. Another problem area has been shipping costs. This was a major factor in inflation, as the costs of container transportation exploded. But the latest data shows prices have fallen 90% from their highs in 2021. No more products stuck on the other side of the world. No more import/export costs tearing a hole in your budgeting.
Spending is Strong
By all accounts, it was a good Christmas for businesses. Marks and Spencer report a banner year for festive sales, up by 7.3% like-for-like, on everything from groceries to clothing. Tesco and Sainsburys saw similar successes. While the figures by volume aren’t fantastic due to the rising prices, businesses report that customers spent the same amount, choosing a smaller number of quality items. And while the postal strikes weren’t good for online retailers, the high street saw increased footfall as customers wanted to guarantee they had the presents under the tree for the big day.
Business Leaders are Investing in the UK
Amid the turbulence, major leaders are showing their confidence in the landscape. Back with Marks and Spencer – they just announced plans to open eight major stores and 12 grocery locations across the UK, creating 3,400 jobs up and down the country. Hotel Chocolat are also planning an expansion in 2023, believing that consumers will still be looking for luxuries in these tricky times.
Business Sales Enquiries are Up
We’re expecting this to be a big year for business sales. So far this month, DaltonsBusiness has seen enquiries to business sales increase by 25% – and there’s no signs of this waning. Showpad report that two thirds of business sales agents feel positive about the business landscape for 2023. 86% expect their sales to increase. If you’re considering a sale this year – why not start the process now, and start working on your listing?
