Business brokers form a growing $1.8 billion U.S. market boosted by the large number of businesses now being sold by retiring Baby Boomers, Millennials, and others. The market is 80% untapped as only 20% of the businesses sold are sold by business brokers.
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.
Top 5 Things to Know About Business Brokers
- Market Size and Growth: 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.
Where to Learn More
To find out more about this growing market, be sure to check out a new report titled The U.S. Business Brokers Industry by Marketdata LLC. This comprehensive report provides an overview of the market, an industry outlook, demand data, information on turnover, major competitor profiles, and a reference directory of industry information sources.
About the Author: John LaRosa is the President of Marketdata LLC and is the author of 100+ industry and market studies. His research appears in top media outlets including ABC, CNN, Fox, Forbes, USA Today, The Wall Street Journal, The New York Times, and a variety of trade journals.
