The U.S. Business Brokers Industry

PUBLISHED: November 4, 2024

PAGES: 60 Pages

DELIVERY TIME: 1-2 business days

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Description

This groundbreaking new study by Marketdata examines the $1.8 billion U.S. business brokers industry. 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.

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.

This Marketdata study examines the nature and evolution of business brokers, their operations and key metrics (industry income statement, average revenues per firm, number of brokers and brokerages, average yearly earnings of brokers), demand factors (small businesses up for sale), major industry trends (technology, younger brokers, diversified income streams, AI-related efficiencies), industry size for 2018 to 2030 forecast, franchising, and in-depth profiles of the top 4 franchisors. Includes findings of interview with industry experts and top competitor CEOs, and an industry Reference Directory of sources.

Company profiles for: Transworld Business Advisors, Murphy Business, Sunbelt Business Brokers, First Choice Business Brokers.

Introduction: Report Scope, Sources of Information, Methodology

Nature & Operations of Business Brokers

Industry definition, scope, main activities
Overview of the market, structure, key metrics
Industry history from 19602 to present
Discussion: how business brokers are different from M&A advisors and investment banks
Business broker service market by type: limited service brokers vs. online, by application
Average earnings per broker, figures by various sources, Marketdata
Factors driving Buyer behavior - discussion
Influences on Seller behavior - discussion
Broker operations: fees, profit margins, revenue streams, franchises, benchmarks for new vs. seasoned brokers

Tables:

Industry Average Income Statement: expenses by type, profit margin

Industry Status Report

Industry Outlook: findings of interviews with leading brokerage firms' CEOs, published You Tube video interviews
Industry history and development, performance during past downturns, pandemic effects
Trends: discussion of technological, niche markets, market expansion, emerging markets, regulatory compliance, value-added services, strategic planning.
Discussion of The Brokerage Simplification Act of 2023

Industry Size and Growth

Industry definition, Census NAICS code
Summary & discussion of various estimates of no. of business brokers, $ size of the industry (U.S. Census Bureau, articles, trade groups, other mkt. research firms)
Estimated number of individual brokers: Marketdata
Estimates of industry size by other research firms
Avg. revenues per franchise for Sunbelt, Murphy, Transworld
2023 industry performance: discussion and analysis
2024 industry performance: discussion and analysis
2025 market forecast discussion and analysis
2025-2030 market forecast, discussion and analysis, rationale

Table:

Estimated Size of The U.S. Business Brokers Industry: 2010-2030

Demand: Small Business Sales and Indicators

Discussion of the scope and number of small business in America, revenues by size, male vs. female ownership, avg. salary of a small business owner, ownership by Millennials, main costs
Turnover: percent of small businesses that open vs. fail, reasons for failing, industries with best survival rate
Number of business owners, by age, by gender
Number of businesses for sale: factors affecting, SBA data, SCORE projections for no. of businesses for sale
Reasons why a business will not sell: discussion
Business sales data is poor

Major Competitor Profiles

(Description of the company's services, headquarters address, number of outlets, franchise fees and investment costs, avg. annual revenues per franchise, income statement, etc.)
List of some major business brokers
Analysis of estimated systemwide revenues of top 4 franchisors and share of industry sales. (Table)

In-depth profiles:

Transworld Business Advisors (franchise)
Sunbelt Business Brokers (franchise)
Murphy Business (franchise)
First Choice Business Brokers (franchise)

Reference Directory of Industry Information Sources

Name/address/phone/key contacts: trade groups, journals, magazines, directories, special surveys, consultants, etc.