Want to buy a business? Or perhaps you want to sell your business. According to BizBuySell’s Insight Report for 2024, “The number of businesses bought and sold grew a modest 5%. There were 9,546 closed transactions, representing an enterprise value of $7.59 billion—15% higher than 2023—indicating a greater concentration of higher-priced deals.”
Sellers had more reason to celebrate than buyers, as the median sale price for businesses increased 3% from 2023 to $345,000. Deals closed faster, with the median days on the market dropping 3% to 168 days.
Multiples also rose—the average cash flow multiple was up 3% to 2.57, and the average revenue multiple rose 6% to .67. The business brokers quoted in the report say 2025 is off to an even stronger start.
Top 3 Industries
The manufacturing, building and construction, and online and technology industry sectors boasted the most growth with a “combined median sale price of $700,000 and 32% YoY increase in transaction volume.” However, acquisitions in the retail, service, and restaurant sectors were flat, with a collective median sale price of $280,000.
Uncertain Future
That’s not to say everything looks good this year. According to the Insight Report, economists are already concerned that increased tariffs (proposed and those already in place) “will lead to rising costs and possibly worsen inflation.” BizBuySell says this is particularly “worrisome for small business owners still reeling from the effects of the U.S.-China trade war of 2018, with 48% bracing for what may lie ahead.” If they face higher costs, 20% of business owners say they’ll raise prices.
Inflation is still a concern for many business owners, with 54% saying inflation will not ease up this year, though 26% expect to see some relief, and 20% are uncertain.
A Buyer’s Market
Despite the increased prices, 38% of business brokers believe 2025 will be a buyer’s market since many business owners are eager to sell now rather than wait for a better offer, and buyers are more focused “on the long-term potential rather than immediate returns.” However, 23% of business brokers believe it’s a seller’s market, and 28% say the market is balanced.
Retirement is the primary reason (38%) for selling, which isn’t surprising given that many of these businesses are still owned by baby boomers. A “challenging labor market” is driving some sales, with 50% of business owners saying the labor market is not improving.
Who’s Buying?
Interestingly, 42% of business buyers surveyed identify as “corporate refugees” who think acquiring a business is their best path to entrepreneurship, while 14% were recently unemployed and 9% had recently retired.
Another trend identified in the BizBuySell Insight Report is younger entrepreneurs “entering the buying arena as Entrepreneurship Through Acquisition (ETA) gains traction. Leading universities—including Wharton, Harvard, Duke, and UC Berkeley—now offer programs and clubs dedicated to this business strategy. Business brokers report growing interest, with 32% noting a slight increase in this activity and 14% reporting significant growth.”
Service Please
Despite nearly flat growth (2%), the service sector accounted for 40% of all business-for-sale transactions in 2024, with a median sales price of $325,000 up only $5,000 from 2023.
Buyers are attracted to service businesses “due to their low-risk profiles, with niche businesses especially desirable due to their unique offerings and limited competition.”
Retail sales transactions also only rose 2%, but there was “steady demand for specialty retailers with unique market positions or prime locations.”
Restaurant transactions performed better, boasting a 5% increase in the median sales price to $225,000, despite a 4% drop in median revenue.
Market Outlook
BizBuySell says, “Small business buying and selling activity has demonstrated growth and resilience. However, financing remains a challenge.”
According to Scott Phillips of MSK Ventures, “Fragmented business sectors with little or no technology, automation, processes, or demand generation activity but with good customer base and growth prospects” represent the best opportunity today.
Ultimately, says BizBuySell, “Opportunity exists in any market. For sellers, preparation is key. Yet many business owners are unprepared. Only 15% have undergone a professional valuation, while 53% have a rough estimate, and 33% have no idea of their business’s worth.”
If you’re considering selling your company, getting a proper valuation “ensures the best possible exit strategy.”
There are more details in the report. Be sure to check it out.
Rieva Lesonsky is President of Small Business Currents, LLC, a content company focusing on small businesses and entrepreneurship. While you can still find her on Twitter @Rieva, you can also reach her @Rieva.bsky.social and LinkedIn. Or email her at Rieva@SmallBusinessCurrents.com.
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