Q3 2024 Market Report: Sustained Growth in Business Sales

Business Sales and Acquisitions: Key Insights

The third quarter of 2024 saw positive trends in the business-for-sale market. BizBuySell reported a 5% rise in small business acquisitions, marking the fifth consecutive quarter of growth despite broader economic uncertainties.  

Axial highlighted a 30.19% increase in deal flow year-over-year, with notable activity in business services, healthcare, and consumer goods, underscoring the growing diversity of buyer interests. Seller financing also gained traction, driven by fluctuating interest rates, as sellers became more open to flexible terms to close deals.

What Buyers Value in a Business

Buyers prioritize clean financial documentation, typically requesting three years of organized records, including profit-and-loss statements and tax returns. Businesses that operate independently of the owner's direct involvement are more attractive, as they offer smoother transitions to new ownership. Additionally, efficient, systematic processes enhance a business's scalability, boosting its market value.

Strategies to Maximize Business Value

Preparing a business for sale requires careful planning. Automating financial tracking and maintaining accurate records through a CPA not only impresses buyers but also expedites the sale process. Increasing earnings and refreshing the business's physical and online presence—such as through minor renovations or website upgrades—can make a significant difference in how buyers perceive value.

 Market Outlook and Conclusion

The expectation is for the business-for-sale market to continue growing into 2025 with lower interest rates and a post-election environment. Sellers are motivated to close deals before potential market shifts, while buyers are capitalizing on favorable conditions to expand or acquire new ventures.