BizBuySell Report: Small Business Confidence Rises Amid Economic Concerns
The latest BizBuySell Insight Report shows a boost in small business confidence, with sellers' confidence up by four points to 50, and buyers' confidence rising two points to 54, marking the first time both groups have shown growth together. Many business owners feel optimistic about the potential impact of the 2024 U.S. Presidential election on their businesses. Notably, 67% of surveyed owners believe Donald Trump would be more supportive of small businesses compared to 28% who favor Kamala Harris.
Business sales in Q3 grew by 5%, with service and retail sectors seeing notable demand. Despite a small drop from last quarter’s peak, 2,399 businesses were sold, totaling $2 billion in value. While sales prices dipped slightly, service and retail sale prices surged, and restaurant and manufacturing sales grew by 15% and 20%, respectively.
Seller financing has become more popular due to high-interest rates, with 28% of sellers open to it, up from last year. Rising costs from inflation and labor shortages remain challenges, with 79% of owners experiencing higher expenses and labor issues.
Looking ahead, nearly 20% of business owners plan to sell by 2025, driven by high values and personal reasons like retirement. With favorable pricing and a decline in interest rates, experts predict a strong finish to 2024. For full details, visit BizBuySell.com for the complete report.