Market Outlook from BizBuySell
After a year of financial strain driven by persistent inflation and high interest rates, small business buying and selling activity has demonstrated growth and resilience. Sellers are choosing to enter the market rather than wait for a higher price, and buyers are choosing to put their money forward rather than wait for lenders to lower interest rates.
However, financing remains a challenge. Until borrowing rates decline and lending criteria loosen, securing deals will require creative solutions. This is reflected in why most business brokers (23%) cite high interest rates as the top concern for the small business market and 91% consider seller financing important for 2025 transactions.“With tighter lending conditions, both buyers and sellers should be prepared to negotiate creative financing options, such as seller notes, earn-outs, or partial equity retainment. These structures can help bridge valuation gaps and signal confidence in the business’s future performance,” says BJ Delhamer.
Looking ahead to 2025, attention has shifted to the Trump administration and how its policy changes will impact the business environment. While pro-business advocates are optimistic about potential improvements, such as lower taxes, reduced interest rates, and fewer regulations, there are also concerns that trade policies could negatively impact the economy. Regardless of the outcome, time has proven that entrepreneurs adapt and good businesses get acquired.
In today’s market, most buyers (76%) are prioritizing stable, recession-resistant businesses, then thriving businesses (47%) and fixer-uppers (19%). Financial performance is the top factor buyers analyze when evaluating acquisitions (42%), followed by growth potential (24%), location (18%), staff and management in place (7%), customer base (4%), and brand reputation (1%).
Savvy entrepreneurs are finding emerging opportunities such as those with solid foundations, yet under utilize modern technology. 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, 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. A proper valuation not only determines market price, but also identifies business strengths and weaknesses to address, ensuring the best possible exit strategy.