Top 5 and Bottom 5 Industries for Small Business Acquisitions in 2024

The 2024 M&A landscape presents a mix of opportunities and challenges across various industries. While some sectors are thriving with growth and innovation, others are struggling with declining revenues and shifting market dynamics. Here’s a look at the top 5 most desirable industries and the bottom 5 least desirable industries for small business acquisitions this year.

Top 5 Industries for Small Business Acquisitions in 2024

1. E-commerce and Online Retail

? Why It’s Hot: The digital marketplace is booming, with global retail e-commerce sales projected to exceed $7 trillion by 2025. Small businesses specializing in niche markets or innovative online retail models are particularly attractive due to their ability to tap into this growth.

2. Health and Wellness

? Why It’s Hot: A growing emphasis on preventive care, mental health awareness, and holistic living has propelled this industry forward. Businesses offering virtual fitness coaching, health supplements, and mental health services are in demand as consumers prioritize personal well-being.

3. Technology and AI Services

? Why It’s Hot: The rapid advancement of artificial intelligence and digital transformation has made small businesses providing IT support, cybersecurity consulting, and AI-powered solutions highly sought-after acquisition targets. The AI industry’s explosive growth, including a 4.5x increase in AI-related jobs since 2013, underscores this trend.

4. Construction and Infrastructure

? Why It’s Hot: Infrastructure-focused legislation has boosted demand for construction-related services. Small businesses in concrete work, excavation, pipework, and repair services are benefiting from government contracts, making them attractive acquisition prospects with stable, long-term revenue potential.

5. Food Industry

? Why It’s Hot: Following a pandemic-related slump, the food sector is rebounding. The return to dining out and rising consumer spending have increased both deal volume and sale prices, particularly for small restaurants, specialty food producers, and catering businesses.

Bottom 5 Industries for Small Business Acquisitions in 2024

1. Global Cargo Airlines

? Why It’s Not: This sector has faced a sharp revenue decline—28.8% in 2023 alone—due to COVID-19 disruptions and geopolitical challenges. The volatility makes it an unattractive choice for acquisitions.

2. Global Sugar Manufacturing

? Why It’s Not: As one of the fastest declining industries globally in 2024, sugar manufacturing is grappling with shrinking margins and changing consumer preferences, discouraging acquisition interest.

3. Global Commercial Printing

? Why It’s Not: The ongoing shift to digital media has significantly reduced demand for commercial printing services, particularly in developed markets. This contraction limits profitability and long-term viability.

4. Global Newspaper Publishing

? Why It’s Not: The transition to digital platforms continues to erode the traditional newspaper publishing industry, leading to declining revenues and reduced buyer interest.

5. Global Fertilizers and Agricultural Chemicals Manufacturing

? Why It’s Not: Despite being essential, this sector faces slower growth and a projected revenue contraction at a compound annual growth rate (CAGR) of 2.3%, making it less appealing for M&A activity.

Key Takeaways

The top-performing sectors for acquisitions in 2024 emphasize growth, innovation, and consumer demand—particularly in technology, health, and infrastructure. Conversely, the least desirable sectors reflect industries struggling with obsolescence, shifting market demands, and economic challenges. For buyers and sellers alike, understanding these trends can be pivotal in navigating the small business acquisition landscape this year.