If you’re considering selling your business in 2024, you’re not alone. Whether you’re planning to retire, explore new ventures, or simply looking for a change, the decision to sell is a major one.
But before you dive in, it’s important to understand what the current market looks like. What trends are driving business sales? How long does it typically take to sell? And what factors could influence the sale price?
Understanding the data behind the business selling landscape can give you a clearer perspective and help you navigate the process with confidence.
From valuation metrics to buyer interest, these 17 statistics will help paint a clearer picture of the opportunities and challenges awaiting business owners in 2024.
Here are the 17 must-know statistics when selling your business this year!
Business Value and Wealth
When selling your business, understanding its value is vital. Buyers consider more than just revenue – they look at profitability, growth potential, and even brand reputation.
The sale price directly impacts your personal wealth, so knowing how your business is valued can help you get the best deal. These statistics will offer insights into how business value ties to wealth creation in today’s market.
- 80-90% of business owners have their wealth tied up in their companies (1).
- The median sale price for small businesses is $329,000, with median revenue at $636,000 (1).
- Less than one in three high-value businesses (priced over $2,500,000) successfully find a buyer (1).
Sale Process and Timing
The process of selling a business can be complex and time-consuming. From preparing your business for sale to finding the right buyer, timing is everything.
How long does it typically take to sell, and what steps should you expect along the way? These statistics will help you understand the timeline and key milestones in the business sale process.
- On average, selling a small business takes 6 to 12 months (1).
- 48% of business owners intending to sell lack a proper exit strategy (1).
- Approximately 34% of U.S. states mandate the involvement of a business broker in the sale process (1).
Sales Performance
A business’s sales performance plays a major role in attracting potential buyers. Strong, consistent sales signal stability and growth potential, while fluctuations might raise concerns.
Understanding how your sales numbers impact your business’s appeal can help you make strategic decisions before listing. These statistics reveal how sales performance affects the sales process.
- 79% of sales leaders and managers say revenue increased over the past year (3).
- 78% of sales leaders and managers say new customer acquisition increased over the past year (3).
- 82% of sales leaders and managers feel confident about their company’s 12-month growth strategy (3).
Revenue Sources and Strategies
Diversified revenue sources and strategies greatly enhance business sales prospects, with over 90% of sales teams using multiple revenue streams, 42% relying on recurring sales, and 89% incorporating partner sales, which 83% of professionals say now have a larger impact on revenue than the previous year.
- Over 90% of sales teams use more than one revenue source (3).
- 42% of sales leaders and managers say recurring sales is their top revenue source (3).
- 83% of sales professionals say partner selling has a bigger impact on revenue than a year ago (3).
- 89% of sales teams currently use partner sales (3).
Challenges and Customer Expectations
Meeting customer expectations has become a significant challenge for many businesses, especially in a rapidly changing market. As customer demands evolve, businesses must adapt or risk losing potential buyers.
These challenges are not just about hitting sales targets – they’re about understanding what customers want and delivering it. The following statistics highlight how shifting customer expectations and market difficulties are impacting business sales today.
- 67% of sales reps don’t expect to meet their quota this year (3).
- 53% of sales professionals say it’s harder to sell than a year ago (3).
- 78% of business buyers say their company is more careful about spending money than before (3).
- 86% of business buyers are more likely to buy if companies understand their goals (3).
As you prepare to sell your business in 2024, these statistics offer key insights to guide your approach. With so much of your money tied to your business, you need to plan carefully and create a strong exit strategy to maximize your sale price.
Focusing on boosting sales performance, diversifying revenue streams, and addressing challenges like shifting customer expectations can enhance your business’s appeal to buyers.
By leveraging these statistics and understanding the market, you can better position your business for a successful and profitable sale.
Sources:
- https://acquira.com/facts-about-selling-your-business/
- https://blog.hubspot.com/sales/sales-statistics?hubs_content=blog.hubspot.com%2Fsales%2Fai-in-sales&hubs_content-cta=33%25+of+an+inside+sales+rep%E2%80%99s+time
- https://www.salesforce.com/blog/15-sales-statistics/
- https://reply.io/social-selling-stats/
- https://blog.thebrevetgroup.com/21-mind-blowing-sales-stats
- https://www.close.com/blog/39-shocking-stats-that-will-change-the-way-you-sell
- https://www.exigo.com/54-mind-blowing-stats-about-social-selling/
- https://spotio.com/blog/sales-statistics/
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