Max L. Friar | Source | Managing Partner at Calder Capital, LLC

“If a seller has a stable or growing business that is maintaining its margins and is somewhat shielded from AI or potential tariffs, that business will be a rocket ship on the market. Buyers will flock left and right. Conversely, if you are in a business that is likely to be disrupted in the next year and your 2024 performance faltered, it may be fairly painful for you on the market,” said Max Friar, managing partner and CEO of Calder Capital in Michigan. As Friar noted, the word “disrupted” is key. Even businesses directly affected by tariffs may continue to succeed in today’s market. “While it may not ‘feel’ like the right time to sell, if your sales/profits are stable or growing and you operate in an industry that is resistant to tariff fallout or AI disruption, now is an excellent time to sell. Businesses that are in home services or commercial maintenance - HVAC, plumbing, electrical, decking, roofing, landscaping, asphalt - these are all hot tickets,” says Max Friar.

Max Friar, founder of Calder Capital, hits the nail on the head with this: “I use the word ‘cede’ because it is stronger than ‘delegate.’ Many owners of small businesses delegate some responsibilities; however, they still retain tight oversight and control. To grow continuously, an entrepreneur must recognize where they are weakest and literally cede parts of the business to other leaders.”

“For a variety of reasons — time of year, business performance, lots of pain in manufacturing, low but improving seller sentiment, and elevated interest rates — there remain relatively few quality sellers on the market. Meanwhile, November 2024 injected some steroids in the arms of buyers,” Friar said. “Despite policy uncertainty, private equity still has a lot of dry powder, and we are seeing (entrepreneurship through acquisition) program buyers as well as corporate refugees flood the market.”