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 Third Quarter 2022, the marketplace remains an advantageous place for business owners to transition their business. Since 2020, the buyer pool for businesses has increased dramatically due to historically low interest rates, high unemployment and low job satisfaction. However, there have been some early indicators signaling a shift in the marketplace. With rapid rates of inflation and interest rates spiking beyond even pre-pandemic levels, the buyer pool is projected to level off as many of the incentives to purchase an existing business disappear. Seller Financing has emerged as an alternative to traditional bank financing and remains an attractive selling point for buyers.
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!