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.
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