Small Business Acquisitions Reach Pre-Pandemic Levels

Small business acquisitions are now back up to pre-pandemic levels, according to the most recent Insight Data from BizBuySell.

According to the latest data, small business acquisitions have increased by 5 percent over the past year and by 3 percent in the last quarter. In total, 2,448 businesses were reportedly sold over the second quarter of 2024, which roughly matches the pre-pandemic levels of 2019.

Small business acquisition rates decreased dramatically during the pandemic, and subsequent issues included rising interest rates and inflation. So, reaching this milestone somewhat represents a return to normalcy, at least in terms of business acquisition numbers.

And it’s not just the amount of businesses being bought and sold either – the median sale price of these businesses is also up 25 percent year-over-year, ultimately reaching a record high of $375,000.

For current business owners, this data suggests that it’s becoming easier to sell and to get a competitive sale price. Encouraging business performance numbers are leading more prospective entrepreneurs willing to take the leap and purchase an existing business. And an active marketplace means more competition among potential buyers, ultimately driving sale prices higher.

For those looking to buy a business, these numbers indicate that you may have to deal with a competitive market and increasing prices.

Of course, it’s impossible to tell if the trends will continue in this direction. It’s possible that small business acquisitions and prices will continue to rise in the coming years. Or the increased rates could convince some potential buyers to wait it out, ultimately decreasing competition and lowering prices. There are plenty of economic experts and projections to look at, but these aren’t always correct and sometimes even contradict one another. So business buyers and sellers may have to accept the current conditions and just make the best possible decision based on their specific circumstances. Understanding the overall industry trends simply makes it easier to make an informed choice.

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This article, "Small Business Acquisitions Reach Pre-Pandemic Levels" was first published on Small Business Trends