Pool of Potential Small Business Buyers Is Changing Says Market Pulse Quarterly Report

According to the quarterly Market Pulse Report published by the International Business Brokers Association (IBBA), M&A Source, and the Pepperdine Private Capital Market Project, business sales in the second quarter of 2016 were comprised of more small companies than compared to a year ago (Q2 2015).

More than half (57%) of the deals that closed in Q2 2016 were valued under $499,999, whereas 50% of deals were valued under $499,999 in Q2 2015. Similarly, respondents report that 23% of deals in Q2 2016 were valued between $5 million and $50 million versus 34% in Q2 2015. The quarterly report found increased interest from first-time buyers who were foreigners, former corporate executives, or women, compared to Q1 2016 as well as previous years. A third of respondents said more foreigners (35.5%) and former corporate executives (29.5%) inquired about buying a business in 2016 than earlier in the year and 12 percent said that more women were in the market to buy a business.