Last year brought ebbs and flows in small business acquisitions thanks to an increase in interest rates; however, a flurry of transactions in the fourth quarter indicates that 2024 will be stronger.
The total of small business acquisitions in the U.S. last year was up less than 1% from the year before, according to BizBuySell’s Insight Data. The value of those deals increased from $6.3 billion to $6.5 billion.
More significant shifts were seen on a quarterly basis, with acquisitions down 10% in the first quarter, steady in the second and third quarters and up 12% in the fourth quarter.
Now may be a good time to make a deal, experts say. “If the business has a good return on the investment and ability to service debt, it’s likely a good time to buy, regardless of rates,” said Ken Bohenek, business intermediary at Murphy Business Sales. “Then, as rates soften, you’ll likely be in a much better cash flow position than those who bought when money was cheap, and rates quickly escalated.”
