$1.8 Billion U.S. Business Brokers Industry Poised For Future Growth

November 8, 2024 - Marketdata LLC, a leading independent market research publisher of “off-the-shelf” studies about service industries since 1979, has released a new 60-page report entitled: The U.S. Business Brokers Industry. This new study examines the nature and operations of business brokers – the professionals that act as intermediaries between the buyers and sellers of businesses, a fascinating but little-analyzed sector.

According to Research Director, John LaRosa: “This is a growing market boosted by the large number of businesses now being sold by retiring Baby Boomers and others. The market is 80% untapped as only 20% of the businesses sold are sold by business brokers.”

Major Findings:

* Market Size… Marketdata estimates that the U.S. business brokers industry was worth $1.8 billion in 2023, with revenues forecast to grow 8.5% annually to 2030.

* Demand… There are 33 million small businesses in the United States and over the next 10-15 years an estimated 12 million will be sold.

* Industry Structure… The business brokers market is fragmented and is populated by more than 1,500 brokerage firms, employing 8,800 brokers. Brokers earn an average of $120,200 per year and the “average” brokerage firm has revenues of $396,000.

* Franchising is significant in this industry. The top 4 firms (Transworld, Murphy Business, Sunbelt, First Choice) operate a combined 724 outlets, and have average earnings per outlet of as much as $861,000 per year – much higher than the industry overall.

* Competition… Many people are attracted to this profession due to the low start-up cost, high 8-12% commissions, and no requirement for any license in many states. However, the work is complex and deals can take 6-9 months to complete. Many fall through. Oddly, many real estate agents often dabble in this market and call themselves business brokers, but lack the competency to do deals.

* This industry has grown steadily since the mid-1990s, except for 2008-2009, and the pandemic only affected it briefly during 2020.

* Trends… Technology and AI is increasing efficiency, shortening the time to do company valuations and due diligence, so that more deals get done in a year. More women are entering the field. Business sellers are younger as more Millennials exit their companies.

According to Research Director, John LaRosa: “This is an industry characterized by ease of entry and intense competition. Successful business brokers must possess several skillsets. Not only must they have a solid knowledge of finance and due diligence, but they must be good at sales as well as being effective negotiators.”

About The Report

The U.S. Business Brokers Industry , published in November 2024, is an independently researched market research study. Covers: industry definition/nature, broker operations and key ratios, factors affecting demand, industry trends and issues, industry $ size from 2018-2030 forecast, status report/findings of interviews with industry CEOs, and in-depth profiles of top 4 franchisors. It is 60 pages long. Price is $995. A report Table of Contents is available by email and at the website Contact: John LaRosa, Marketdata LLC, 7210 Wareham Drive, Tampa, FL 33647, 813-971-8080, or at: www.marketdataenterprises.com. A $99 Overview summary report is also available. Learn more with this You Tube video of major findings:https://youtu.be/ii9zP9uL6oU

About Marketdata LLC

Marketdata is a 45-year old market research and consulting firm, specializing in tracking a wide variety of service and healthcare markets. It publishes industry and market studies, performs custom research projects and consulting, and offers business coaching services.

Contact Information

John LaRosa

Research Director

Marketdata LLC

(1) 8139718080

john@marketdataenterprises.com