Business Brokers in the US - Industry Market Research Report

Business Brokers in the US - Industry Market Research Report

Business Brokers in the US

Despite the higher access to credit, the Business Brokers industry has contracted. Business brokers operate as intermediaries during the sale of a small business, providing due diligence, valuation, advertising and negotiation services to downstream clients. In contrast to merger and acquisition advisers, business brokers focus on companies valued at less than $2.0 million, often finding the ultimate buyer near the company's location. According to data from the International Business Brokers Association (IBBA), the industry is currently characterized by an oversupply of potential small business buyers and an undersupply of high-quality businesses for sale. This resulted in higher valuations for small businesses before the COVID-19 pandemic, increasing commissions for successfully brokered business sales. Industry revenue has been shrinking at an annualized rate of 2.1% over the past five years and is expected to total $ $1.9 billion in 2023 when income climbs by an estimated 0.2%.

Companies in this industry act as intermediaries between buyers and sellers of small businesses. As part of the process, business brokers estimate the value of a business, advertise the sale without disclosing the business’ name, handle negotiations and facilitate others aspects of the sale, including due diligence.

This report covers the scope, size, disposition and growth of the industry including the key sensitivities and success factors. Also included are five year industry forecasts, growth rates and an analysis of the industry key players and their market shares.