As we head toward the end of 2024, there’s good news for small business owners looking to sell—and buyers ready to invest. According to BizBuySell’s latest Insight Report, the market for small businesses is growing, and confidence is on the rise.
Confidence is Up for Both Sellers and Buyers
With the US Presidential election less than a month away and the Federal Reserve recently cutting interest rates, new data indicates the small business community has increased confidence in the business-for-sale market.
In Q3 2024, both sellers and buyers felt more confident about the market. Seller confidence rose to 50 on a 100-point scale (up from 46 last year), while buyer confidence rose to 54 (up from 52). This means more business owners are optimistic they’ll get a good price if they sell now, while buyers feel better about finding the right opportunities.
Service and Retail Businesses Are Selling for More
The service and retail industries have been strong performers this year, with sale prices climbing. Service businesses saw a 16% increase in median sale prices, while retail businesses went up 11%. Buyers are willing to pay more for businesses that show strong financials, especially those with good cash flow and consistent revenue.
Restaurant and Manufacturing Sales Are Also on the Rise
Restaurant sales jumped 15% compared to last year, with more deals closing faster than in previous quarters. Manufacturing businesses are also hot, with sales up 20%, especially in food products, printing, and signage. Despite some challenges in these industries, they remain popular choices for buyers.
Election and Interest Rates: What’s the Impact?
As the U.S. presidential election approaches, many business owners are paying close attention. Most owners (67%) believe Donald Trump will have the best impact on small businesses, while 28% think Kamala Harris will be more beneficial. In any case, everyone is waiting to see the outcome of both the election and whether the Fed will lower interest rates again before the end of the year.
Interest rates are also in the spotlight, but they don’t seem to be a dealbreaker. While higher rates have led to some price reductions, deals are still getting done. Buyers and sellers are adjusting their strategies—some are offering seller financing, while others are finding creative ways to structure deals.
What’s Next for the Market?
As we head into 2025, experts believe the small business market will continue to grow, with plenty of buyers looking for good deals. If you’re thinking about buying or selling a business, now might be the right time to make your move!
The first step to take is to reach out to us to schedule a time to have a no-obligation call with one of our experienced brokers--click HERE to learn more!
