Summary

In this podcast episode, Brandon Bourgeois and Chris Sater discuss the current state of the market for selling businesses in 2025. They explore key trends, including inventory challenges, buyer behavior, financing options, and the importance of scalability for business growth. The conversation highlights the uncertainty in the market and how it affects both sellers and buyers, emphasizing the need for preparation and adaptability in deal structures. In this conversation, Brandon Bourgeois and Chris Sater discuss the current state of the business market, focusing on financing challenges, seller sentiment, and the importance of preparation for potential sellers. They emphasize the need for sellers to be flexible and ready to act, as well as the growing trend of franchises in the market. The discussion also covers business valuations, multiples, and predictions for future market activity, highlighting the importance of being prepared for upcoming opportunities.

Takeaways

• The market has seen significant changes in inventory levels.
• Sellers are hesitant due to market uncertainty and financing challenges.
• Buyers are looking for businesses with guaranteed revenue and scalability.
• Interest rates have impacted deal structures and buyer behavior.
• Preparation and proper financials are crucial for sellers.
• Creative financing options are becoming more common in deals.
• Market dynamics are shifting, with buyers seeking long-term growth.
• Sellers should not wait for the perfect time to sell their business.
• The importance of understanding buyer priorities in the current market.
• Good deals can still happen even in tough market conditions. Private equity groups have minimum targets for investments.
• Small deals are hard to finance due to high rates.
• Sellers should keep their financials clean and ready.
• Seller sentiment is cautious; many are hesitant to sell now.
• It's better to get on the market sooner than later.
• Franchises are becoming more prevalent in the market.
• Buyers are still paying high multiples due to limited supply.
• Sellers need to prepare their businesses like an audit.
• The market is expected to stabilize in Q3 and Q4.
• 2026 may present significant opportunities for sellers.

Chapters

00:00Market Overview and Key Trends

02:50Inventory Challenges and Seller Hesitation

05:46Buyer Behavior and Market Uncertainty

08:45Financing and Deal Structures

12:03Scalability and Business Growth

15:04Buyer Priorities and Market Dynamics

20:09Market Dynamics and Financing Challenges

21:58Seller Sentiment and Common Mistakes

25:28Preparing for Market Opportunities

29:04Franchise Trends and Business Models

30:15Understanding Business Valuations and Multiples

34:49Future Market Predictions and Seller Readiness

Keywords

market trends, selling business, inventory challenges, buyer behavior, financing, deal structures, scalability, business growth, market uncertainty, seller hesitation, business market, seller sentiment, financing challenges, business valuation, franchise trends, market predictions, seller mistakes, business opportunities, economic uncertainty, buyer activity