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Deal Street Digest

Deal Street Digest #7: Small Business M&A YTD '24 Update

Published 8 months ago • 1 min read

Deal Street Digest

Reader,

As part of our service to you Deal Street seeks to bring relevant small business deal information to your fingertips. Recent reports from the IBBA, BizBuySell and SBA loan reporting statistics indicate that small business owners are feeling more and more optimistic about selling their business.

Take this excerpt from a Q3 2024 BizBuySell Insight Report;

According to BizBuySell’s Buyer-Seller Confidence Index, which measures the sentiment of nearly 3,000 business owners and buyers on a scale 0-100, seller confidence rose 4 points to 50 from 46 in 2023, while buyer confidence rose two points to 54 from 52, respectively. This is the first year in which confidence rose among both groups simultaneously.

The election outcomes seems to have been favorable to small business sentiment as well. In the same survey of 3,000 small business owners, 67% favored a Trump outcome as most favorable to the small business sector, as opposed to 28% for Harris.

The Report indicated small business acquisitions grew 5% in the third quarter of 2024. Of these Q3 transactions, 39% were service businesses, followed by restaurants at 21%, retail at 20%, and manufacturing businesses at 6%. Restaurant acquisitions were active in the third quarter, with closed transactions up 15% year-over-year.

According to the SBA 7(a) loan statistics, through November 8th, 2024, 14% of loans were used to finance the Construction industry. 12% of deals were in the Accommodation & Food Services industry - dovetailing with the increased activity in the sector.

Additionally, the year end 2024 SBA loan approval count was the highest its been since 2018.

The convergence of the two reports provides a very good indicator of the state of small business M&A - despite what the news may say. Activity is high, sentiment is high, buyers & sellers are optimistic on a scale greater than anytime in the last 6 years.

The talk of lowering interest rates further in the near future, as well as a more favorable economic environment for small businesses indicates 2025 will continue the upwards trend in acquisition activity.

Now is a good time to be on the market & in the market for a cash flowing small business opportunity. Deal Street will help you get the information you need to pursue your opportunity.

Whether selling or buying, Get on the Street!

Sincerely,

Shep Campbell

Editor

650 S. Shackleford Rd., Little Rock, AR 72211
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The Insider Tip Sheet for Business Sales, Mergers & Acquisitions

Deal Street is the brainchild of Shep Campbell, a seasoned M&A advisor and business broker. Deal Street distills hands-on experience into actionable, trustworthy insights on small business M&A. From valuation strategies to exit planning, our content equips you with the knowledge to navigate deals confidently. With Deal Street, you’re not just informed—you’re empowered to master the art of M&A.

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