#United States #Independence #IBBA #M&A Source #Market Pulse

Exploring the Latest Trends in Business Sales under $50 Million

In March 2025, the International Business Brokers Association (IBBA®) and M&A Source® released their Market Pulse Q4 2024 Survey, which offers valuable insights into the state of business sales for enterprises valued between $5 million and $50 million. Over the past few years, particularly from 2021 to 2024, these companies have shown intriguing trends in valuation, market confidence, and financing options.

Key Findings of the Survey

1. Valuation Multiples

The survey revealed that businesses within the specified range of $5M to $50M received an average valuation of 6.0x EBITDA (earnings before interest, taxes, depreciation, and amortization). This figure remains comparable to the robust market conditions of Q4 2021, indicating a stable interest in mid-range business sales amid ongoing economic shifts.

2. Market Confidence

Advisors participating in the survey noted a revival in seller confidence, albeit still lower than peak levels observed in previous years. Despite the challenges, there has been a marked uptick in optimism among sellers, reflecting a shift from the lingering uncertainty that characterized the markets during earlier periods.

3. Financing Trends

The survey also highlighted how the financial landscape for sellers has evolved. In Q4 2024, business sellers enjoyed a higher percentage of cash at close—averaging 84% of the total consideration received upfront. In contrast, seller financing accounted for 15% or less for the majority of transactions, indicating a preference for immediate liquidity rather than extended financing arrangements.

The Outlook for 2025

Scott Bushkie, CEO of Cornerstone Business Services, expressed an optimistic perspective for the year ahead. With interest rates gradually declining and the uncertainties surrounding elections fading, a transformation from a 'wait-and-see' mentality to an actively engaged deal-making environment is anticipated. He emphasized that these shifts could boost activity in both seller and buyer markets.

Survey Methodology and Scope

Conducted from January 1-15, 2025, this survey's insights stem from a comprehensive analysis involving 368 Business Brokers and M&A Advisors, who completed 330 transactions during the quarter. This marks the 51st edition of the Market Pulse Survey, reaffirming its importance as a resource for business owners and advisors navigating the complexities of business sales.

About the IBBA

Founded in 1984, the IBBA is the largest international nonprofit association dedicated to business brokers, boasting over 3,000 members worldwide. The organization provides essential resources, educational opportunities, and professional designations to ensure brokers are well-equipped to guide transactions successfully.

For more information, interested parties should reach out to the IBBA directly or visit their website. As the market for small to medium-sized businesses continues to evolve, staying informed through resources like the Market Pulse Survey remains crucial for brokers, buyers, and sellers alike.