2025 Market Trends: It’s a Seller’s Market

The business selling landscape is experiencing a significant shift, with a strong seller's market emerging in recent years. Several factors are driving this trend, but the impact is clear: if you plan to sell your business in 2025, expect a lot of interest from potential buyers. Here's why:

Pro-business administration has owners staying put: While the specific policies may be up for debate, the overall perception among business owners is that the current administration is creating a business-friendly environment. BizBuySell is stating in their annual outlook that an impressive 90% of business owners have expressed positive sentiment for 2025. This perception encourages many owners to hold on and enjoy the benefits rather than exiting the market. Eventually, factors like health issues, burnout, and family considerations will prompt owners to sell and retire, but for now, the allure of positive change is keeping owners in the game and limiting the supply of businesses on the market.
Buyers are bullish: We are witnessing incredibly high demand for healthy, founder-run businesses. Like the reasons mentioned above, buyers are eager to enter the world of business ownership. The pro-business shift has ignited an entrepreneurial spirit that has been dormant for some time. Daily, I converse with buyers who seek advice on finding businesses to purchase in today's environment. My basic advice: be aggressive, stay plugged-in, and be ready to move quickly.
Private Equity looking downstream: This seller’s market has led to an intriguing development where private equity groups, family offices, and other similar buying entities are now open to purchasing smaller businesses than they traditionally would. As a result, a whole new type of buyer is entering the lower end of the business sales market, increasing competition.

What Should Business Owners Do?

While it's fine to enjoy the current pro-business trends, remember that you are ultimately responsible for your business's performance. Keep your focus on maintaining and improving your business's health, ensuring that it remains in great shape for the day you decide to sell it. If you believe now might be the right time to sell, consider reaching out to your broker or M&A advisor to start an exploratory discussion.

At Calhoun, we can provide you with a valuation and an honest perspective on the market as it relates to your business. No fee, no obligation—just valuable information to help you make an informed decision about selling.