Loren vandegrift - 2025 Insights from BUSINESS EXITS broker on sales, values, and trends

Rising interest rates have fundamentally altered the world of business acquisitions, creating winners and losers across different industries. Loren Vandegrift, who's brokered over $500 million in business sales in just five years, explains how today's economic landscape has transformed what buyers value and how sellers can position themselves.

E-commerce businesses have seen dramatic valuation drops while service-based businesses like HVAC, auto repair, and non-emergency medical transportation thrive in this environment. Why? These essential services operate independently from macroeconomic pressures, making them safer bets in uncertain times. Meanwhile, the declining costs of business ownership has made certain industries especially attractive to buyers with available capital.

Perhaps the most dramatic shift is how exit deals are now structured. Sellers increasingly keep 10-20% ownership stakes when exiting, gaining more upfront cash while maintaining potential upside. As Vandegrift notes, "When I only own 15% of the business, it's more like watching a stock and not something I have to be as invested in." This arrangement benefits both parties – sellers get financial security while buyers gain confidence from the founder's continued investment.

The current market strongly favors buyers with cash reserves, but trust between parties matters more than ever. "I care a lot more about who is buying, not just how much they're paying," Vandegrift emphasizes. With debt service costs consuming more of a business's profits, buyers must be trustworthy stewards who won't cut corners that damage long-term value.

For entrepreneurs planning exits in the next few years, preparation remains essential. Clean financials and building management teams that can operate without the founder dramatically increases buyer confidence and potentially commands higher multiples. Most businesses under $50 million in revenue sell for 3-7 times adjusted EBITDA, with potential for 10-11 times multiples for high-growth software or subscription models.

Looking forward, Vandegrift sees tremendous opportunity in longevity and wellness spaces as aging millennials prioritize health optimization – a sector he believes could expand tenfold in coming decades. Want to learn more about preparing your business for eventual sale? Contact Loren@BusinessExits.com to discuss your future exit strategy.