According to BizBuySell’s Insight Report, 2024 saw a modest 5% increase in the overall number of businesses bought and sold. The year closed with 9,546 transactions, representing a combined enterprise value of $7.5 billion—15% higher than 2023.
Transaction activity steadily grew in the first half of the year, with a 10% gain in Q1 and a 5% increase in Q2 and Q3. However, Q4 experienced a slowdown as uncertainty surrounding the presidential election tempered activity. While the Federal Reserve implemented three incremental rate cuts in 2024—lowering interest rates from 5.25-5.5% to 4.25-4.5%—the impact on the business-for-sale market was limited. In fact, 60% of surveyed buyers reported no change in their purchase timelines due to the rate cuts. Meanwhile, 17% said the cuts encouraged faster action, and 23% remained unsure. As election-related uncertainty faded, many buyers signaled readiness to return to the market. Despite these challenges, median sale prices rose 3% year over year to $345,000, and deals closed faster, with median days on the market dropping by 3% to 168 days. Multiples also saw gains with the average cash flow multiple increasing by 3% (from 2.49 to 2.57), and the average revenue multiple up by 6% (from 0.63 to 0.67). With market conditions stabilizing and buyer activity poised to pick up, 2024 showcased resilience and optimism in the small business transaction space.
