Barbecue / Patio / Hearth

According to a 2021 "Hearth Global Market Report" released by The Business Research Company in July, the global hearth market is expected to reach $12.1 billion by year's end, which will mark a 3.6% increase in compound average growth from 2020. Driving this increase, as highlighted in the report, is the ever "growing demand for hearth as they are considered a convenient and energy-efficient option for room heating." While this growth is projected to continue for the foreseeable future, there are some key restraint factors in the industry that could inhibit market growth. Most notably, environmental regulations aimed at reducing pollution could result in manufacturers allocating more money towards renewable energy products which will in turn affect retailers.

Over the last 40 years, Sunbelt Business Brokers has transitioned dozens and dozens of barbecue, patio and hearth businesses. While much of our success can be attributed to the highly experienced and knowledgeable business intermediaries stationed in offices throughout the United States, Sunbelt Franchise Resales (SFR) has partnered with the Hearth, Patio & Barbecue Association (HPBA) to help educate their network of business owners on maximizing value and the business selling process. As a result, this has given us keen insights into how to effectively market this type of business and has allowed us to play an integral role in helping owners achieve their succession goals.  

As of the conclusion of 2023, the marketplace remains an advantageous place for business owners to transition their business. Immediately following the onset of COVID-19 in March of 2020, the buyer pool for businesses increased dramatically due to historically low interest rates, high unemployment and low job satisfaction. Since 2022, however, rapid rates of inflation and interest rates spiking beyond even pre-pandemic levels left many business owners wondering if they could still earn maximum value for their business.

The simple answer remains "YES!"

Year-over-year, the business resale market has continued to demonstrate that buyers are interested in purchasing strong performing businesses regardless of economic conditions. BizBuySell, the largest online business-for-sale marketplace, published their market insights report at the conclusion of Q4 in 2023. Here's what they said:

                   "Businesses bought in 2023 showed stronger financials compared to the previous year,                             also exhibiting a U-shaped pattern with values surging in the 4th quarter. Median cash                               low grew 13% in the final quarter, finishing the year with a 4% annual gain, while median                           revenue gained 16% and 6% respectively. This activity underscores small business                                       resilience despite current economic conditions. It also suggests buyers are still willing to                             invest in great opportunities."

If you are an owner contemplating the sale of your business, it's never been more critical and beneficial to consult with someone who understands the marketplace, the selling process and how to appropriately value and market your business in order to maximize value.

Ready to explore selling your business? Contact us today for a free/no-obligation discussion and complimentary value range analysis!