The Market Pulse Executive Report is a collaboration between The International Business Brokers Association® and M&A Source, created to provide quality information on the market conditions for businesses sold in Main Street and Lower Middle Market to business owners and their advisors. Rocky Mountain Business Advisors brings you exclusive access to select key market information in the 2024 Q4 report—information typically reserved for contributing members.
Key Highlights of the 2024 Q4 Market Pulse Survey:
The Q4 Market Pulse survey was conducted January 1-15, 2025 with 368 participating business brokers and M&A advisors. The analysis shows trends and conditions in the Main Street ($0-$2M) and LMM ($2M-$50M) sectors.
What’s Inside the Report?
Market Trends:
- Optimism is rising because of expected interest rate reductions and a favorable political climate but many are weary of possible effects caused by potential tariffs.
- Market confidence remains low in the Main Street market despite sellers receiving an average of 2.5 offers per deal and an average of 94% of their asking price.
- Confidence is growing in the LMM. Sellers are receiving an average of 4.5 offers per deal and 100%+ of their asking price.
Seller & Buyer Behavior:
- Individual buyers continue to dominate the Main Street market.
- First-time buyers made 43% of Main Street acquisitions and 24% of LMM acquisitions.
- Serial entrepreneurs made 32% of Main Street acquisitions and 19% of LMM acquisitions.
Industry Focus:
- 2024’s top industries included restaurants, personal services, consumer goods, business services, construction and manufacturing. Restaurants and personal services led in the Main street market while construction/engineering led in the LMM.
- More bids are placed on businesses with higher valuations.
Key Takeaways for Q4 2024:
- Optimism is rising but many are adopting a “wait and see” attitude for 2025.
- Retirement is still one of the number one reasons sellers are putting their business on the market.
This survey analysis shows a modest uptick in deal-making as advisors fielded more offers per deal, sellers got more cash at close and valuations stayed flat or better.