A seller’s market arises when the demand from potential buyers exceeds the supply of quality businesses available for sale, giving sellers a distinct advantage. In this scenario, sellers typically hold more leverage during negotiations, allowing them to command higher valuations and secure faster deal closures with more favorable terms.
Overall, the market reflects a sense of cautious optimism, with a notable difference in sentiment between larger and smaller businesses. Larger businesses, especially those valued at over $2 million, have seen the most significant year-over-year improvement, with sentiment levels exceeding 55%. In contrast, smaller businesses continue to face challenges and remain less optimistic.