How the Presidential Election Is Shaping Small Business Sentiment

As the final quarter of 2024 approaches, small business owners are increasingly optimistic about the business-for-sale market. The Q3 2024 BizBuySell Market Insight Report highlights these growing sentiments and the key factors driving market trends, including the impact of the upcoming U.S. presidential election and recent interest rate cuts by the Federal Reserve.

Key Insights from Q3 2024

Seller Confidence on the Rise

According to the BizBuySell Market Insight Report, more than half of small business owners (54%) feel confident they would receive an acceptable price if they sold today. This sentiment is reflected in increased transaction volumes, particularly for service and retail businesses, which are currently achieving higher valuations.

Sector-Specific Growth

Acquisition activity is expanding across several sectors. Transactions for manufacturing businesses increased by 20%, while restaurant acquisitions saw a 15% uptick. This trend demonstrates buyers' interest in sectors perceived as having strong growth potential and profitability.

The Election’s Influence on Small Business Sentiment

The upcoming presidential election is a significant factor shaping small business sentiment. The BizBuySell Market Insight Report reveals that a majority of owners (67%) believe that Donald Trump would positively impact the small business sector, compared to 28% who favor Kamala Harris. Owners cite tax reform (71%), small business loans and grants (61%), healthcare costs (50%), labor laws and minimum wage (47%), and regulatory changes (44%) as key areas of concern.

Rick Murray, a service company owner in Oregon, shared his perspective: “It depends on who wins the presidential election. My business made significantly more money under the last Trump administration, and things have gotten progressively worse under Biden.”

Buyers are also expressing increased confidence. Daniel Robertson of Wyoming stated, “I need to get going on starting a business, but I also would like confirmation that Trump will be able to win and peel back taxes and regulations.” This reflects a broader demand for reduced taxes and a more favorable business environment.

Related: Buy a Business in Wyoming

Support for Harris’s Economic Plan Among Some Owners

While Trump garners most of the support, some small business owners remain optimistic about Kamala Harris’s economic plan. Heather Johnston, owner of Good Wine (NYC LLC) in New York, noted that Harris’s proposal for a $50,000 tax break for new business owners has caught her attention. “Just the mention of a 50K tax break for new owners means she is really thinking about my sector. Very refreshing,” Johnston commented.

A Look Ahead

As the year progresses, small business owners and buyers will be closely monitoring the election's outcome and its potential impact on business policies. While some owners express optimism about changes that could benefit their sectors, others remain cautious about the future.

The Q3 2024 BizBuySell Market Insight Report provides a comprehensive analysis of these trends, offering valuable insights for brokers, buyers, and business owners. Accessing the full report can provide a deeper understanding of these developments and support informed decision-making in an evolving market landscape.

Read the full report from BizBuySell here.

Ready to Sell Your Business or Explore Opportunities?

At Transworld Business Advisors of Wyoming, we specialize in helping business owners navigate the complexities of buying and selling businesses. If you're considering selling your business or exploring acquisition opportunities, our team is here to guide you every step of the way. Contact us today for a free, no-obligation confidential consultation and take the next step towards maximizing your business's value.

 

 

 

 

Source: BizBuySell Q3 Market Report