Hot M&A Industries for Companies With $1M–$20M in Revenue
If you’re a business owner asking, “Is now the right time to sell my business?” — the answer may be yes. For companies earning between $1 million and $20 million in annual revenue, the mergers and acquisitions (M&A) market is very active. Buyers see businesses in this revenue range as the perfect mix of proven success and growth potential.
But not every industry is equally attractive. If you’re curious about the best industries to sell a business or where M&A demand is strongest right now, here are the hottest sectors for companies with $1M–$20M in revenue.
1. Healthcare Services
M&A trend: Healthcare continues to be one of the top industries buyers are targeting.
High demand from an aging population and growing consumer spending on health makes this industry very appealing. Smaller providers are especially attractive to buyers because they can be rolled into larger platforms.
Examples of in-demand businesses:
Specialty medical practices (dermatology, dental, physical therapy)
Home health and elder care
Behavioral health and counseling services
If you own a healthcare business and are asking, “How much could I sell my business for?” — you may find multiple buyers competing.
2. Software & Technology (SaaS)
Tech and SaaS companies in the $2M–$10M revenue range are among the hottest M&A industries. Buyers love:
Recurring subscription models
High customer retention
Cloud-based or niche SaaS solutions
Even small software firms with steady revenue can command high multiples when it’s time to sell.
3. Business Services
The business services sector is booming with M&A deals, especially in companies that help other businesses operate more efficiently.
In-demand niches include:
Staffing and recruiting firms
Digital marketing agencies
Janitorial, HVAC, or facilities management companies
Outsourced accounting, payroll, and back-office support
Buyers see these businesses as scalable and easy to expand into new markets.
4. Niche Manufacturing & Distribution
Specialized manufacturing and distribution companies are in demand, especially if they produce niche products, have proprietary processes, or long-term contracts.
Private equity groups often pursue a “buy and build” strategy—purchasing several smaller firms and combining them into one larger, more profitable company.
If your business falls in this category, you’re in one of the top industries to sell a business right now.
5. Home & Commercial Services
From pest control to roofing, service businesses tied to property are selling fast. These companies are:
Recession-resistant
Regionally scalable
Often subscription or contract-based
Buyers are eager to acquire home and commercial service businesses, especially those with strong brand recognition and recurring clients.
6. Financial & Professional Services
Smaller accounting firms, insurance agencies, and wealth management practices are getting snapped up quickly. The recurring revenue and loyal customer bases make them low risk for buyers.
If you own a professional services firm with $1M–$20M in revenue, you’re in a high-demand M&A industry.
Why Buyers Target $1M–$20M Companies
Strong track record: Buyers prefer businesses that are past the startup phase but not yet maxed out.
Growth potential: There’s still plenty of upside for investors to scale operations.
Lower risk: These companies already have proven revenue and customers.
Perfect size for add-ons: Private equity groups often buy companies in this range to add to larger platforms.
Final Thoughts: Is Now the Time to Sell Your Business?
If your business generates $1M–$20M in annual revenue, you’re in one of the most attractive ranges for today’s M&A market. Healthcare, SaaS, business services, niche manufacturing, home services, and professional services are the hottest industries for acquisitions right now.
Whether you’re planning to sell soon or just want to know what your company could be worth, it’s smart to understand how buyers are looking at your industry.
If you’re thinking, “Should I sell my business?” or “how do I get the most value from selling my business” - talk to us for options…