Exiting Small Businesses: How Online Exchanges are Disrupting M&A

Epoch Equity
2 min readJan 2, 2023
Photo by Bench Accounting on Unsplash

Mergers and acquisitions (M&A) have long been a popular way for companies to grow and expand their operations. However, traditional M&A methods are becoming increasingly outdated, especially for smaller deals. One of the main reasons for this is the rise of online marketplaces and exchanges, which are making it much easier for businesses to be bought and sold, particularly those valued at up to $50 million.

In the past, M&A deals were typically facilitated by investment bankers or other middlemen, who would help match buyers and sellers and negotiate the terms of the deal. This process could be lengthy, costly, and opaque, and it was often difficult for smaller businesses to access these channels.

Today, however, there are a growing number of online marketplaces and exchanges that are making it much easier for businesses to be bought and sold. These platforms allow companies to list their businesses for sale, often at no cost, and connect them with a wide range of potential buyers. This not only makes it easier for smaller businesses to participate in M&A, but also allows them to reach a global audience and potentially get a better price for their business. Some examples include exchanges like Acquire.com and Flippa.com.

Online marketplaces and exchanges are also making it easier for buyers to find and evaluate potential acquisition targets. These platforms often provide a wealth of information about the businesses being sold, including financial data, customer lists, and other key details. This makes it easier for buyers to perform due diligence and make informed decisions about whether to pursue a deal.

Overall, it is clear that online marketplaces and exchanges are revolutionizing the way M&A deals are conducted, particularly for smaller businesses. By providing greater access and transparency, these platforms are making it much easier for companies to buy and sell businesses, and are likely to play an increasingly important role in the M&A landscape going forward.