Business Brokers in the US - Market Research Report (2014-2029)
New York, United States
Last Updated: August 2024
NAICS OD4796Revenue
$1.8bn
Past 5-Year Growth
Profit
$XXX.Xm
Employees
20,482
Businesses
6,184
Wages
$XXX.Xm
Business Brokers in the US industry analysis
Despite the higher access to credit, business brokers endured notable declines due to high inflation, rising interest rates and an inconsistent mergers & acquisition (M&A) climate. In contrast to merger and acquisition advisers, business brokers focus on companies valued at less than $2.0 million, often finding the ultimate buyer near the company's location. According to data from the International Business Brokers Association (IBBA), there is currently an oversupply of potential small business buyers and an undersupply of high-quality businesses for sale. This resulted in higher valuations for small businesses before the pandemic, increasing commissions for successfully brokered business sales. In recent years, the acceleration of interest rates to combat high inflation has significantly curtailed small businesses’ fiscal flexibility, causing revenue to fall at a CAGR of 2.5% to an estimated $1.8 billion over the past five years, including an estimated 3.9% boost in 2024.
Trends and Insights
- High inflation and spikes in interest rates have hindered revenue. Main market businesses were forced to cut back their sales and purchasing activities, as higher costs of financing business transactions harmed broker demand.
- Valuation is a key service in this field. With the rise in merger and acquisition activity in North America, valuation's share of revenue has grown. As deal activity increases, the proportion associated with valuation follows suit.
- Brokers center their business on population dense locations. Statistical analysis reveals a correlation between the distribution of businesses across the U.S and population density, with establishments mirroring the people spread.
- Expertise and service are key for business brokers. They need staff who not only know the market, but can also deliver top-notch customer care to build a solid reputation in the small business scene.
Industry Overview
Market size and recent performance (2014-2029)
Industry revenue has declined at a CAGR of 2.5 % over the past five years, to reach an estimated $1.8bn in 2024.
Trends and Insights
The pandemic did more harm than good
- Business brokers endured significant volatility despite the growth in the volume of mergers and acquisitions and increased access to credit.
- Additional trends and insights available with purchase
Source: IBISWorld
Industry outlook (2024-2029)
Market size is projected to grow over the next five years.
Trends and Insights
Macroeconomic environment and demographic shifts
- The number of businesses is forecast to expand as economic activity increases following the pandemic.
Biggest companies in the Business Brokers in the US
| Company | Market Share (%)
2024 | Revenue ($m)
2024 | Profit ($m)
2024 | Profit Margin (%)
2024 |
|---|---|---|---|---|
Transworld Business Advisors | 0.0 | N/A | N/A |
To view the market share and analysis for all 1 top companies in this industry, view purchase options.
Products & Services Segmentation
Source: IBISWorld
Industry revenue is measured across several distinct product and services lines, including Valuation, Due diligence and Advertising. Valuation is the largest segment of the Business Brokers in the US.
Trends and Insights
Valuation is crucial in establishing and maintaining a solid reputation
- Determining the value of a business is arguably the most critical step in selling and purchasing an existing small business.
- More insights available in the full report
Widen you competitive advantage with related industries
Competitors
- There are no industries to display.
Complementors
- Insurance Brokers & Agencies in the US
- Real Estate Sales & Brokerage in the US
- Conveyancing Services in the US
- Credit Counselors, Surveyors & Appraisers in the US
International industries
- Property Management in Canada
- Real Estate Services in Australia
- Credit Bureaux & Rating Agencies in the UK
Table of Contents
About this industry
Industry definition
Companies in this industry act as intermediaries between buyers and sellers of small businesses. As part of the process, business brokers estimate the value of a business, advertise the sale without disclosing the business’ name, handle negotiations and facilitate others aspects of the sale, including due diligence.
What's included in this industry?
Providing valuation services to small businessesProviding advertising services during the sale of a small businessProviding negotiation services on behalf of small businessesProviding due diligence concerning small business transactionsCompanies
Transworld Business AdvisorsPurchase this report to view all 1 major companies in this industry.
Related Terms
MERGER AND ACQUISITION ADVISERSBUSINESS-FOR-SALEDUE DILIGENCEIndustry Code
NAICS 54199 - Business Brokers in the US
Performance
Get an indication of the industry's health through historical, current and forward-looking trends in the performance indicators that make or break businesses.
Analyst insights
High inflation and spikes in interest rates have hindered revenue. Main market businesses were forced to cut back their sales and purchasing activities, as higher costs of fi...
In this chapter (4)
- Current Performance
- Outlook
- Volatility
- Life Cycle
Key metrics
- Annual Revenue, Recent Growth, Forecast, Revenue Volatility
- Number of Employees, Recent Growth, Forecast, Employees per Business, Revenue per Employee
- Number of Businesses, Recent Growth, Forecast, Employees per Business, Revenue per Business
- Total Profit, Profit Margin, Profit per Business
Charts
- Revenue, including historical (2014-2023) and forecast (2024-2029)
- Employees, including historical (2014-2023) and forecast (2024-2029)
- Businesses, including historical (2014-2023) and forecast (2024-2029)
- Profit, including historical (2014-2024)
- Industry Volatility vs. Revenue Growth
- Industry Life Cycle
Detailed analysis
- Trends in supply, demand and current events that are driving current industry performance
- Expected trends, economic factors and ongoing events that drive the industry's outlook
- Key success factors for businesses to overcome volatility
- How contribution to GDP, industry saturation, innovation, consolidation, and technology and systems influence the industry's life cycle phase.
Products and Markets
Learn about an industry's products and services, markets and trends in international trade.
Analyst insight
Valuation is a key service in this field. With the rise in merger and acquisition activity in North America, valuation's share of revenue has grown. As deal activity increase...
In this chapter
- Products & Services
- Major Markets
Key metrics
- Largest market segment and value in 2024
- Product innovation level
Charts
- Products & services segmentation in 2024
- Major market segmentation in 2024
Detailed analysis
- Trends impacting the recent performance of the industry's various segments
- Innovations in the industry's product or service offering, specialization or delivery method
- Key factors that successful businesses consider in their offerings
- Buying segments and key trends influencing demand for industry products and services
Geographic Breakdown
Discover where business activity is most concentrated in an industry and the factors driving these trends to find opportunities and conduct regional benchmarking.
Analyst insights
Brokers center their business on population dense locations. Statistical analysis reveals a correlation between the distribution of businesses across the U.S and population d...
In this chapter (1)
- Business Locations
Charts
- Share of revenue, establishment, wages and employment in each state
- Share of population compared to establishments in each region in 2024
Tables
- Number and share of establishments in each state in 2024
- Number and share of revenue each state accounts for in 2024
- Number and share of wages each state accounts for in 2024
- Number and share of employees in each state in 2024
Detailed analysis
- Geographic spread of the industry across North America, and trends associated with changes in the business landscape
- Key success factors for businesses to use location to their advantage
Competitive Forces
Get data and insights on what's driving competition in an industry and the challenges industry operators and new entrants may face, with analysis built around Porter's Five Forces framework.
Analyst insights
Expertise and service are key for business brokers. They need staff who not only know the market, but can also deliver top-notch customer care to build a solid reputation in ...
In this chapter (4)
- Concentration
- Barriers to Entry
- Substitutes
- Buyer & Supplier Analysis
Key metrics
- Industry concentration level
- Industry competition level and trend
- Barriers to entry level and trend
- Substitutes level and trend
- Buyer power level and trend
- Supplier power level and trend
Charts
- Market share concentration among the top 4 suppliers from 2019-2024
- Supply chain including upstream supplying industries and downstream buying industries, flow chart
Detailed analysis
- Factors impacting the industry’s level of concentration, such as business distribution, new entrants, or merger and acquisition activity.
- Key success factors for businesses to manage the competitive environment of the industry.
- Challenges that potential industry entrants face such as legal, start-up costs, differentiation, labor/capital intensity and capital expenses.
- Key success factors for potential entrants to overcome barriers to entry.
- Competitive threats from potential substitutes for the industry’s own products and services.
- Key success factors for how successful businesses can compete with substitutes.
- Advantages that buyers have to keep favorable purchasing conditions.
- Advantages that suppliers have to maintain favorable selling conditions.
- Key success factors for how businesses can navigate buyer and supplier power.
Companies
Learn about the performance of the top companies in the industry.
Analyst insights
No major firms dominate with more than a 5% market share. This is due to high market fragmentation, enabling access to various niche segments.
In this chapter
- Market Share Concentration
- Companies
- Company Spotlights
Charts
- Industry market share by company in 2020 through 2024
- Major companies in the industry, including market share, revenue, profit and profit margin in 2024
- Overview of Transworld Business Advisors's performance by revenue, market share and profit margin from 2018 through 2024
Detailed analysis
- Description and key data for Transworld Business Advisors, and factors influencing its performance in the industry
External Environment
Understand the demographic, economic and regulatory factors that shape how businesses in an industry perform.
Analyst insights
Most states mandate a broker license. The license process for brokers involves a fee payment and passing a real estate exam.
In this chapter
- External Drivers
- Regulation & Policy
- Assistance
Key metrics
- Regulation & policy level and trend
- Assistance level and trend
Charts
- Regulation & Policy historical data and forecast (2014-2029)
- Assistance historical data and forecast (2014-2029)
Detailed analysis
- Demographic and macroeconomic factors influencing the industry, including Regulation & Policy and Assistance
- Major types of regulations, regulatory bodies, industry standards or specific regulations impacting requirements for industry operators
- Key governmental and non-governmental groups or policies that may provide some relief for industry operators.
Financial Benchmarks
View average costs for industry operators and compare financial data against an industry's financial benchmarks over time.
Analyst insights
Longer transaction times eat into brokers' profits. By speeding up transactions, brokers can handle more deals and enjoy increased earnings, as commission is partly based on ...
In this chapter
- Cost Structure
- Financial Ratios
- Key Ratios
Key metrics
- Profit margin, and how it compares to the sector-wide margin
- Average wages, and how it compares to the sector-wide average wage
- Largest cost component as a percentage of revenue
- Industry average ratios for days' receivables, industry coverage and debt-to-net-worth ratio
Charts
- Average industry operating costs as a share of revenue, including purchases, wages, depreciation, utilities, rent, other costs and profit in 2024
- Average sector operating costs as a share of revenue, including purchases, wages, depreciation, utilities, rent, other costs and profit in 2024
- Investment vs. share of economy
Data tables
- Industry Multiples (2017-2022)
- Industry Tax Structure (2017-2022)
- Income Statement (2017-2022)
- Balance Sheet (2017-2022)
- Liquidity Ratios (2017-2022)
- Coverage Ratios (2017-2022)
- Leverage Ratios (2017-2022)
- Operating Ratios (2017-2022)
- Cash Flow & Debt Service Ratios (2014-2029)
- Revenue per Employee (2014-2029)
- Revenue per Enterprise (2014-2029)
- Employees per Establishment (2014-2029)
- Employees per Enterprise (2014-2029)
- Average Wage (2014-2029)
- Wages/Revenue (2014-2029)
- Establishments per Enterprise (2014-2029)
- IVA/Revenue (2014-2029)
- Imports/Demand (2014-2029)
- Exports/Revenue (2014-2029)
Detailed analysis
- Trends in the cost component for industry operators and their impact on industry costs and profitability
Key Statistics
Industry Data
Data Tables
Including values and annual change:
- Revenue (2014-2029)
- IVA (2014-2029)
- Establishments (2014-2029)
- Enterprises (2014-2029)
- Employment (2014-2029)
- Exports (2014-2029)
- Imports (2014-2029)
- Wages (2014-2029)
Methodology
How are IBISWorld reports created?
IBISWorld has been a leading provider of trusted industry research for over 50 years to the most successful companies worldwide. With offices in Australia, the United States, the United Kingdom, Germany and China, we are proud to have local teams of analysts that conduct research, data analysis and forecasting to produce data-driven industry reports.
Our analysts start with official, verified and publicly available sources of data to build the most accurate picture of each industry. Analysts then leverage their expertise and knowledge of the local markets to synthesize trends into digestible content for IBISWorld readers. Finally, each report is reviewed by one of IBISWorld’s editors, who provide quality assurance to ensure accuracy and readability.
IBISWorld relies on human-verified data and human-written analysis to compile each standard industry report. We do not use generative AI tools to write insights, although members can choose to leverage AI-based tools within the platform to generate additional analysis formats.
What data sources do IBISWorld analysts use?
Each industry report incorporates data and research from government databases, industry-specific sources, industry contacts, and our own proprietary database of statistics and analysis to provide balanced, independent and accurate insights.
Key data sources in the US include:
- US Census Bureau
- US Bureau of Labor Statistics
- US International Trade Commission
Analysts also use industry specific sources to complement catch-all sources, although their perspective may focus on a particular organization or representative body, rather than a clear overview of all industry operations. However, when balanced against other perspectives, industry-specific sources provide insights into industry trends.
These sources include:
- Industry and trade associations
- Industry federations or regulators
- Major industry players annual or quarterly filings
Finally, IBISWorld’s global data scientists maintain a proprietary database of macroeconomic and demand drivers, which our analysts use to help inform industry data and trends. They also maintain a database of statistics and analysis on thousands of industries, which has been built over our more than 50-year history and offers comprehensive insights into long-term trends.
How does IBISWorld forecast its data?
IBISWorld’s analysts and data scientists use the sources above to create forecasts for our proprietary datasets and industry statistics. Depending on the dataset, they may use regression analysis, multivariate analysis, time-series analysis or exponential smoothing techniques to project future data for the industry or driver. Additionally, analysts will leverage their local knowledge of industry operating and regulatory conditions to impart their best judgment on the forecast model.
IBISWorld prides itself on being a trusted, independent source of data, with over 50 years of experience building and maintaining rich datasets and forecasting tools. We are proud to be the keystone source of industry information for thousands of companies across the world.
Learn more about our methodology and data sourcing on the Help Center.
Frequently Asked Questions
Unlock comprehensive answers and precise data upon purchase. View purchase options.
What is the market size of the Business Brokers in the US industry in United States in 2024?
The market size of the Business Brokers in the US industry in United States is $1.8bn in 2024.
How many businesses are there in the Business Brokers in the US industry in 2024?
There are 6,184 businesses in the Business Brokers in the US industry in United States, which has grown at a CAGR of 2.2 % between 2019 and 2024.
Has the Business Brokers in the US industry in United States grown or declined over the past 5 years?
The market size of the Business Brokers in the US industry in United States has been declining at a CAGR of 2.5 % between 2019 and 2024.
What is the forecast growth of the Business Brokers in the US industry in United States over the next 5 years?
Over the next five years, the Business Brokers in the US industry in United States is expected to grow.
What are the biggest companies in the Business Brokers in the US market in United States?
The biggest company operating in the Business Brokers market in United States is Transworld Business Advisors
What does the Business Brokers in the US in United States include?
Providing valuation services to small businesses and Providing advertising services during the sale of a small business are part of the Business Brokers in the US industry.
Which companies have the highest market share in the Business Brokers in the US in United States?
The company holding the most market share in United States is Transworld Business Advisors.
How competitive is the Business Brokers in the US industry in United States?
The level of competition is moderate and increasing in the Business Brokers in the US industry in United States.
