2024 Business Buying Trends: What Buyers Want
With 2024 coming to a close, BizBuySell is getting insights from small business owners about the trends they’re anticipating for the year ahead. The Q3 2024 Insight Report survey highlights service businesses as the top choice for prospective entrepreneurs. From automotive businesses to healthcare opportunities, entrepreneurs are seeking essential services that remain in demand, despite swings in the economy. The business-for-sale market is seeing higher prices for service and retail businesses, with acquisitions for manufacturing and restaurant businesses surging by 20% and 15% respectively, fueled by increased buyer and seller confidence.
Service Businesses: What Buyers are Looking For
When business buyers were asked which sector they’re interested in acquiring, they overwhelmingly pointed to service sector businesses. This sector includes various types of companies, ranging from landscaping and yard services to legal firms, laundromats, and architecture and engineering companies. These businesses are often considered recession proof, as many service businesses can withstand the ups and downs of the economy. Despite the challenges of economic downturns, many service businesses remain essential, as they provide services that people rely on. With its growing appeal, it comes as no surprise that entrepreneurs are eager to invest in this sector, encompassing both standard and specialized services.
Notable among prospective buyers’ other mentions is an interest in real estate businesses. The real estate industry experienced significant changes in 2024, particularly in the way real estate commissions are now managed. The settlement of the antitrust lawsuit against the National Association of Realtors (NAR) eliminates the rule requiring MLS listings to display commission rates, potentially empowering buyers to negotiate agent fees directly.
Beyond Business Sectors: Trending Market Forces
Looking beyond sector preferences, buyers are keeping their eyes on several key trends in the business-for-sale marketplace. Baby boomers retiring and exiting their businesses top the list, with 13.5% of buyers mentioning the succession of these businesses. With more baby boomers reaching retirement age, buyers are eager to acquire these established businesses, which offer proven records, steady cash flow, brand recognition, and built-in customer and vendor relationships.
Beyond the silver tsunami of retiring owners, buyers are specifically seeking stable, recession-resistant businesses. Many cite interest in businesses with low employee numbers, noting the sustained low unemployment numbers from this past year. With small businesses facing ongoing challenges in recruiting, hiring, and retaining employees, turnkey operations with few employees or automated businesses are increasingly appealing. Traditional brick-and-mortar businesses like car washes and laundromats remain popular, showing staying power despite digital transformation.
Where Buyers Have the Edge
As business buyers look to find their ideal business, they’re encountering a diverse market with an inventory of over 45,000 active business listings across sectors on BizBuySell in Q3 2024. The current marketplace presents a wide variety of opportunities: retail, restaurant/food, and other miscellaneous categories show more listings than buyer interest, making it a buyer’s market in these industries. Manufacturing presents a more balanced picture, with interest and opportunities fairly matched. The service and online sectors are witnessing a mismatch between buyer demand and available businesses. With many buyers vying for a smaller pool of listings, sellers are in a prime position to negotiate favorable terms, benefiting from the high demand and limited inventory.
Success in today’s market means more than just finding the right opportunity. Buyers need to line up funding and prepare for thorough due diligence to capitalize on available businesses for sale, especially in high-demand sectors.
Looking Ahead for 2025
With 2025 around the corner and a new administration ready to take office, small business owners and buyers are watching closely. They're particularly interested in prospects for lower taxes, relaxed regulations, and increased funding and grants for Main Street businesses.
Ready to start your search and find one of these trending businesses? Search businesses for sale on BizBuySell.