October 17, 2024
​Read on web​

Our state of M&A post warrants an extra email this week!

We asked 10 brokers and buyers:

What's the market like right now for selling or buying a business? And what are you expecting for 2025?

Here's what they told us:

💥 Market recovery and optimism for 2025

Most of our experts say the market is slowly improving compared to last year.

With interest rates decreasing and a "new normal" settling in, there's a general optimism for 2025 and an expectation of increased M&A activity going forward.

💥 Trends are sector-specific

The outlook varies depending on what type of business you're talking about.

SaaS and recurring revenue models are consistently hot, with buyers actively seeking businesses with predictable income streams.

E-commerce brands, which have had a difficult last couple of years, seem to be regaining interest, particularly for those leveraging AI and sustainability initiatives.

Agencies have also had a tough couple of years, so many owners are focused on getting financials back on track ahead of a sale.

Content has also been disrupted recently, particularly by AI and Google updates, so buyers there are looking for low-risk investments.

Distressed businesses, which right now tend to include certain agencies, e-commerce, and content businesses, can be harder to sell due to weaker recent performance or market shifts, but may appeal to buyers looking for turnaround opportunities.

💥 Buyers want to avoid risk

This is always true, but perhaps even more true now. Buyers are showing caution towards businesses with concentrated risks, such as reliance on a single customer, revenue stream, or traffic source.

That means diversified revenue and customer portfolios are critical to attracting buyers and achieving successful exits.

💥 Going back to basics

Great businesses, those with solid financials and operational excellence, continue to be highly sought after.

While businesses that have had a tough few years can be difficult to sell — and many founders find themselves in this space right now — there's no shortage of buyers looking for businesses that nail all the fundamentals.

💥 Upcoming election and economic uncertainty

The upcoming election and ongoing economic uncertainty have introduced some hesitancy in the market.

But many believe the post-election landscape, combined with potential interest rate cuts, will drive a more favorable M&A environment in 2025.

Deeper insight from our panel

Here are a few quotes from our contributors:

For more insight, here's our full post:

​What’s the market like now for selling a business?​

Also, a quick reminder:

If you want to sell your business in the next year or so, get in touch.

Even if you're not sure what you need or where to start, we can help you figure that out.

See you next time,

Lexi Grant
Founder & CEO
​They Got Acquired​
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