The four themes of the third quarter in this restoration market industry.

As we head into the final months of the year, let’s take a look at what happened in the market in Q3. These are the four major themes: 

1. Inflation & Interest Rates-Conversations have gone from labor shortages to recession. Recently, a lot of people were talking about the negative impacts of labor shortages, which were affecting revenues and valuations. Now, people are talking about recession, inflation, and interest rates. These are definite headwinds in our industry at the moment. 

2. Buyer and seller confidence is declining. Don’t let this scare you; quality businesses are still getting a lot of interest from buyers, so we’re not seeing any meaningful decline in activity and interest in businesses if they meet the right standards. 

“Preparing for the market and being a high-quality listing is more important now than ever.”

3. Quality of Business. The gap between an A-rated business and a business that’s not ready to go to the market is widening. This quality makes a big difference now in what people are willing to pay. There’s almost a 10% to 15% discount for a business that is not ready to go to market.

4. Prepare. This is especially true for high-quality businesses going into Q1 and Q2 of next year. If you are thinking of going to market, I would highly recommend having a strategy and preparing for the market, as that is more important now than ever.

That is what I’m seeing for Q3, going into Q4, of 2022. As always, you can visit our website to connect. Please visit us at for more information or to schedule a no obligation, confidential strategy call.