ETA in 2025: The Biggest Trends Shaping Small Business Acquisitions

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👋 Hey fellow searchers,

The ETA space is evolving, and if you’re searching for a business to buy (or thinking about selling one), keeping up with the latest trends is key. According to DealStream, 2025 is shaping up to be a big year for acquisitions, with new financing options, an M&A boom, and a shift toward niche businesses and tech-driven operations.

Let’s break down the biggest ETA trends to watch in 2025—and how they could impact your acquisition strategy.

1. More Ways to Fund Your Acquisition 💰

ETA buyers have more financing options than ever. Beyond SBA loans, private equity, independent sponsors, and seller financing are becoming increasingly common. Even crowdfunding and alternative lending sources are gaining traction, giving buyers more flexibility to structure deals.

Why it matters: If you’re acquiring, expect more creative financing options to help get deals across the finish line.

2. SMBs That Embrace Tech Will Win 🖥️

Businesses that still rely on outdated processes and manual record-keeping are falling behind. Buyers are prioritizing companies that integrate automation, AI-driven analytics, and modern customer management systems. Even traditional industries like HVAC, landscaping, and auto repair are expected to have some level of digital sophistication to attract strong offers.

Why it matters: Sellers should invest in technology now to increase valuation, while buyers should look for opportunities to modernize old-school businesses.

3. The M&A Market Is Heating Up 🔥

With interest rates stabilizing and plenty of capital in the market, mergers and acquisitions (M&A) are surging. Baby Boomer retirements are also fueling a wave of small business sales, creating more opportunities for buyers—but also more competition for good deals.

Why it matters: If you’re searching for a business, expect faster-moving deals and rising multiples in competitive industries.

4. Boomer Retirements Are Creating More Deals 👴➡️🧑

Many Baby Boomer-owned businesses are hitting the market, as long-time owners look to retire. These businesses often have strong cash flow, established operations, and untapped growth potential—but many owners aren’t formally listing them for sale.

Why it matters: The best deals won’t always be listed publicly. If you’re serious about acquiring, consider direct outreach and off-market deal sourcing to find hidden opportunities.

5. The Rise of Niche Acquisitions 🎯

Instead of chasing broad-market businesses, more buyers are focusing on niche companies with specialized customer bases and higher margins. Think boutique manufacturing, specialty e-commerce, or highly specific service-based businesses. These companies often face less competition and have stronger pricing power than larger, more generalized businesses.

Why it matters: Finding a profitable niche could be your best move in 2025.

6. ESG Is Driving Valuations 🌍

More buyers (and consumers) are prioritizing businesses with strong environmental and social responsibility practices. Whether it’s sustainable packaging, ethical sourcing, or community involvement, businesses that align with ESG (Environmental, Social, and Governance) trends are seeing stronger valuations.

Why it matters: If you’re acquiring, look for businesses with strong ESG appeal—or find ways to improve sustainability post-acquisition.

7. Talent Retention Is More Important Than Ever 👥

In 2025, employee retention and workplace culture are becoming major factors in acquisition decisions. A business with high turnover and difficulty retaining talent could be a red flag. On the flip side, businesses with strong leadership teams and engaged employees are commanding higher multiples.

Why it matters: Buyers should dig deep into employee retention metrics before making an offer.

Final Thoughts

According to DealStream, 2025 is shaping up to be an exciting (and competitive) year for ETA. With new financing options, increased M&A activity, and a shift toward niche acquisitions, savvy buyers and sellers can position themselves for success by staying ahead of these trends.

If you’re in the market, be proactive, move fast, and focus on businesses that are well-positioned for the future.

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DISCLAIMER: This newsletter is for informational purposes only and should not be considered financial advice. It offers analyses of businesses without endorsing any specific financial actions. Readers are advised to do their own research and consult a professional before making investment decisions.