Which Industries Are Driving Business Sales in 2024?

The M&A market in 2024 is seeing strong activity across multiple industries, with certain sectors dominating Main Street and Lower Middle Market (LMM) transactions. As buyers look for resilient, high-growth businesses, industries with recurring revenue, strong margins, and scalable models are attracting the most interest.



In this blog, we’ll break down which industries are driving business sales, why they’re in demand, and how M&A rollups are shaping market trends

Top Sectors Dominating Business Sales in 2024

According to the Q4 2024 Market Pulse Survey, the following industries are leading in transaction volume:


✅ Business Services:


  • High demand for marketing firms, IT services, and consulting companies.
  • Buyers favor subscription-based revenue models and recurring contracts.


✅ Healthcare & Senior Care:


  • Private equity groups are acquiring dental, chiropractic, and home healthcare businesses.
  • Strong demand due to an aging population and rising healthcare needs.


✅ Construction & Home Services:


  • Steady growth in renovation, HVAC, and specialty trade contractors.
  • M&A rollups are consolidating regional players into larger, more efficient operations.


✅ Manufacturing & Distribution:


  • Supply chain improvements have boosted valuation multiples for niche manufacturers.
  • Strategic buyers are integrating smaller distributors to improve logistics efficiency.


✅ Technology & SaaS Companies:



  • Strong buyer appetite for cybersecurity, AI-driven platforms, and cloud services.
  • Businesses with recurring software licenses and high customer retention receive premium valuations.


Why These Industries Are Attracting More Buyers

✔️ Recurring Revenue & Predictability: Buyers prefer industries with long-term contracts, repeat customers, and stable cash flow.



✔️ Scalability & Growth Potential: Sectors with franchise models or opportunities for expansion attract more interest.


✔️ Recession-Resilient Businesses: Industries that withstand economic downturns (healthcare, home services, and B2B SaaS) remain highly desirable.


✔️ Labor & Workforce Efficiency: Businesses that automate tasks or require less manual labor are more attractive due to labor shortages.

M&A Rollups: How Consolidation is Shaping the Market

One major trend in 2024 is the rise of M&A rollups, where multiple businesses in the same industry are acquired and merged to create a larger, more efficient company. This is particularly common in construction, business services, and healthcare.


How Rollups Work:

1️⃣ Smaller businesses are acquired and merged into a larger platform company.


2️⃣ Operations, marketing, and administration are centralized to improve efficiency.


3️⃣ The newly combined company achieves higher valuation multiples due to its size and market share.


4️⃣ Investors or private equity firms eventually exit at a premium sale price.

What This Means for Business Owners Considering a Sale

If you own a business in one of these high-demand industries, 2024 is an excellent time to sell. Buyers and investors are aggressively seeking acquisitions, and businesses with strong financials and scalable models will command higher valuations.


Contact First Choice Business Brokers SF Bay today for a confidential consultation on how to position your business for a profitable sale.

Next in the Series: M&A in 2025 – A Stronger Market Ahead?

In our next blog, we’ll explore what to expect in the 2025 business sales market, key economic factors, and expert predictions for M&A activity. Stay tuned! 🚀

M&A in 2025: A Stronger Market Ahead?

By Michelle Koblas • March 19, 2025
As we move into 2025, business owners considering a sale are entering a highly active M&A market . The Q4 2024 Market Pulse Survey , conducted by the International Business Brokers Association (IBBA) and M&A Source , indicates that buyer demand is expected to rise , driven by lower interest rates, improved economic stability, and strategic acquisitions by both private equity and corporate buyers.  In this blog, we’ll explore predictions for the 2025 business sales market, how business owners can prepare for success, and the critical role of M&A advisors in facilitating smooth transactions .