Private Equity, Search Funds expand buyer pool; diligence burdens
K-shaped performance surfaces in matrix of business acquisitions
Business owners divided on Trump policies: 49% optimistic, 33% pessimistic
Fed rate cuts show little impact on deal timing and demand
The U.S. business-for-sale market reached a period of stabilization in 2025, with transactions flat and sale prices up by 2% annually. Total enterprise value reached $7.95 billion, marking a 3% increase from 2024. This is according to BizBuySell’s Insight Report, which tracks and analyzes U.S. business-for-sale transactions as well as sentiment from business owners, buyers, and brokers.
Transactions declined 1% in Q1 and 4% in Q2, amid uncertainty over rising inflationary costs. Activity picked up in Q3, with transactions jumping 8% as owners chose to sell rather than risk lower valuations. Then, during the government shutdown in Q4, transactions slipped 2% in Q4, a period that notably hindered the SBA’s ability to issue new acquisition loans.
"The government shut down hampered closing deals in 2025, and they rolled to 2026," said Edward Bell of Sunbelt Business Brokers in Florida.
Despite these quarterly swings, overall financials of sold businesses remained stable. The median sale price rose 2% to $350,000, while median cash flow and median revenue increased 3% to $158,950 and $703,000, respectively.
Still, performance varied by sector with some businesses able to absorb or pass along rising costs, while others continued to struggle with compressed margins.
“Higher costs for labor, rent, and supplies have squeezed margins, which can often reduce valuations when those increases aren’t well managed. However, businesses that can pass on those costs to customers to maintain reasonable margins are still seeing strong valuations,” said Dave McGill of Murphy Business Sales- Utah.
This divide in cost-management ability has experts split on where the market leans. Among brokers, 34% say conditions favor buyers and another 34% say they favor sellers, while 27% view the market as balanced. The remaining 5% are unsure.
“Buyers remain active, but they are more cautious and deliberate due to factors such as inflation, tariffs, and immigration related concerns. This has led to more thorough diligence, increased scrutiny of forward-looking assumptions, and a stronger emphasis on risk allocation in deal structure,” according to Jason Ward of TruView Business Advisors.
Brokers, however, warn against being overly cautious when a high‑quality opportunity presents itself, noting that top‑performing businesses continue to draw immediate interest.
“Well-run, profitable businesses were in especially high demand, with many new listings going under contract within just a few weeks, about two to three times faster than normal,” says McGill.
Private Equity (PE) firms and search funds continued expanding their footprint in the small‑business market in 2025, yet their effectiveness and alignment with Main Street remain uneven.
Nearly half of brokers (44%) report an increase in PE activity, driven by direct acquisitions and roll‑up strategies, but 49% say PE buyers introduce a more demanding or complex process, and only 12% say PE moves faster than individual buyers.
“The PE firms are slow in their valuation and quite deliberate with the information and how they control the process. My experiences with direct buyers have been much more positive and even flowing through the deal process,” said David Strejeck of Sumtis Business Advisors in Pennsylvania.
This skepticism is echoed on the owner side. Although interest from PE firms is strong - with 20% of business owners saying they have been approached about selling and nearly 46% reporting multiple inquiries per year - sentiment toward PE remains mixed.
Only 14% of owners say they would “definitely” sell to a PE firm, while 38% say they are unlikely or unwilling, and 32% view PE ownership as negative for the small‑business market, citing concerns about culture, debt‑loading, and operational disruption.
“With the way private equity operates currently, it would be unethical to sell my business to a PE firm for them to strip it for parts and sell the pieces,” said Chaz Forster, owner of Metronaut Studios in Texas.
At the same time, search funds, particularly those led by MBA graduates pursuing Entrepreneurship Through Acquisition (ETA), are becoming a major force. Forty-three percent (43%) of brokers report increased activity from business‑school‑trained buyers, whom some brokers describe as analytical and well‑capitalized but, in certain cases, light on real‑world operating experience.
“Many of our buy side clients are ETA searchers. We love working with these buyers generally, however, it takes more handholding. And it’s not meant for everyone who starts down the road,” said Max Friar of Calder Capital in Michigan.
As a result, both PE buyers and search funds are intensifying competition for high‑quality listings while also lengthening diligence timelines and bringing more complexity into transactions.
Adding to the pressure, a growing wave of ‘corporate refugees’, mid career professionals leaving traditional jobs to buy small businesses, has further saturated the buyer pool, intensifying competition across the very same listings sought by PE firms and search funds. In fact, 44% of buyers now identify as corporate refugees, and another 15% report being recently unemployed.
“I'm seeing a significant shift toward younger, first-time buyers in their 30s and 40s using SBA loans to escape corporate life, often willing to pay premium multiples for businesses with strong systems and lifestyle balance…At the same time, strategic buyers and private equity are moving downstream into the sub-$5M EBITDA space that used to be purely main street territory, creating more competition and driving up valuations for well-documented, scalable businesses,” said Caleb Seegers of Exceptional Business Advisors in Colorado.
The rapid adoption of AI is adding new urgency for some aspiring owners. As more companies embrace AI‑driven systems, 28% of self-identified corporate refugees say concerns about AI replacing jobs influenced their decision to leave corporate life for the independence of business ownership, with 6% citing it as a major factor.
“Companies are integrating AI quickly, sometimes recklessly, and I believe many roles, even senior leadership, will be replaced. I want income streams that don’t have a direct line of sight to being automated,” said one buyer.
At the same time, others see AI as a value enhancer. Thirty‑three percent (33%) of buyers view a business that has adopted AI as more valuable, considering tech‑enabled operations as more resilient and scalable.
“If the business hasn’t started implementing ANY AI enhancements, I would be concerned about any existing staff being able to implement and/or adapt to AI,” another buyer shared.
And for some, the lack of AI is the opportunity. “Financials are what they are. I’d prefer to see financials work where I see an opportunity for AI not currently being used. This is immediate growth potential that can improve margins or increase revenue on a tight deal,” another buyer said.
Among current owners, 65% report using AI in their operations, most commonly in marketing (72%), analytics (58%), search (51%), and customer service (43%). Eighty‑three percent say AI has improved performance, and 10% report reducing employee roles since adopting it.
“AI is a secret weapon for small businesses, because we are trying to do the most from the least, and AI helps to level the playing field in terms of capabilities of a small business versus a big one,” said Dan Huse, owner of Serendipity Consulting LLC in Minnesota.
Together, these shifts show how AI is reshaping not just how businesses operate, but who chooses to own them.
Since the pandemic, essential and thriving businesses have been in high demand among business buyers. Fast forward five years, add inflation, and you have a divergence between premium businesses that continue to thrive and others that face persistent financial challenges. Service businesses often fall into the former.
The service sector demonstrated the strongest growth in 2025, with transaction volume up 4% over the past year and the median sale price rising 5% to $340,000. Service business values also held strong, with the average cash flow multiple increasing by 2% to 2.52. While median cash flow remained flat at $154,766, median revenue surged 12% to $552,589, indicating thinner margins despite strong sales.
Stronger growth stood out in several key areas. Financial services reported a 38% gain in transactions, while the median sale price climbed 40% and the median cash flow rose 15%. Similarly, technology services saw a 12% gain in transactions, while the median sale price rose 15% and median cash flow rose 6%. Architectural and engineering firms saw a 17% gain in transactions with the median sale price up 38% and median cash flow up 44%.
“Businesses that can pass along costs to customers to maintain reasonable margins are still seeing strong valuations. As a result, companies with unique products or services are often less impacted by price increases and, therefore, by inflation and can still command premium pricing.” Said Dave McGill of Murphy Business Sales- Utah.
Premium businesses can also be found in the retail sector. Yet, in 2025 many retailers struggled with rising cost, smaller profits and weaker sales. Dealmaking was relatively subdued. Transactions remained flat for the year and median sale price fell 2% to $250,000. Median cash flow dropped 3% to $116,386, while median revenue also remained flat at $619,582.
Despite these figures, business buyers acquired thriving niche retailers. Cafes and coffee retailers, a neighborhood mainstay, showed a 5% increase in transactions with the median sale price up 18% and median cash flow up 12%. While Bike shop transactions dipped 7%, the median sale price rose 56% and median cash flow rose 28%.
Restaurants also struggled to remain profitable. With rising food costs and changes in consumer spending habits, restaurants have had to find ways to improve efficiency and increase sales volume. New immigration policies, as well as affordable labor have also been a challenge.
Deal volume for restaurants slipped 5% in 2025, as buyers grew more selective. Still, fundamentals remained sound: median price held steady at $225,000, cash flow ticked up 1% to $126,500, and revenue rose 7% to $773,498. This suggests buyers targeted businesses with strong sales and steady customers.
“I focus exclusively on restaurant transactions. The restaurant sector was hit particularly hard in 2025 due to inflation and reduced consumer disposable income. As a result, business sales declined, and sellers were forced to adjust their asking prices,” said Andrea Dangio of Restaurant Realty in California.
The manufacturing sector experienced an 11% decline in transactions in 2025 as buyers waited on the sidelines. With rising costs and shifting trade policies disrupting supply chains, financial performance and values weakened. The median sale price declined 7% to $650,000, while median cash flow dipped 2% to $254,489 and median revenue declined 8% to $1,100,000.
Max Friar of Calder Capital shares his experience over the past year, “It’s a mixed bag. We’ve seen a lot of manufacturing distress in the Midwest. Tariffs, the EV market, etc. have caused some chaos. However, there are many very strong companies.”
Industries with volatile demand, such as automotive parts or consumer electronics, were hit hardest and heightened buyer skepticism. Regulatory hurdles and labor also deterred interest. However, those with flexibility, modern technology, and a proven ability to adapt to economic volatility continue to attract buyers.
Inflation, tariffs, and shifting federal policy are exerting significant influence on how small‑business owners and buyers plan for 2026. Inflation remains the most persistent pressure, with 78% of owners reporting rising expenses over the past year - driven by higher costs of goods (61%), insurance (55%), marketing (45%), and fuel/energy (39%).
“The cost of literally everything has gone up in 2025. Fortunately, we’ve been able to keep our profit margins in check with price increases that so far have not negatively impacted our top-line sales volume,” said Derick Holmes, owner of Lumos Architectural Lighting in Colorado.
More than half of owners (52%) have raised prices to offset these pressures, though many fear customer pushback and weakening demand. Inflation is also compounding labor challenges. Forty-five percent (45%) of owners report difficulty hiring or retaining employees, and 22% say new immigration policies are adding further strain.
“Employees need more income to overcome the price increases for groceries, energy, and rent so they are willing to switch jobs for more money even when it’s not a positive move for them,” said Michael Smith, owner of Simplicity Esports in Texas.
Tariffs and trade policies are adding another layer of complexity. Twenty-eight (28%) of business owners say tariffs are causing them to delay major purchases, while 19% are seeking domestic suppliers. For some, these shifts have become a competitive advantage.
“The tariffs have re introduced many customers to U.S. made products. The BABAA (Build America, Buy America Act) policies put in place with Trump have helped us because we already manufacture domestically. We design, fabricate, and assemble all of our products in Denver, sourcing every component in the U.S. Tariffs have leveled the playing field for us against much of our competition,” said Holmes.
Sentiment toward federal policy under the Trump administration remains divided. Forty‑one percent (49%) of owners feel more optimistic about the business environment than last year, while 33% feel less optimistic. When asked whether President Trump is delivering on his campaign promises to small businesses, 33% say yes, 33% say no, and 28% are unsure - underscoring the broader uncertainty shaping the market.
“Trump has ideas that I agree with but creates too much uncertainty in the market. If Congress will end the tariffs and inflation can be contained the economy will be in a good position,” Smith added.
That uncertainty weighs heavily on owners planning for the year ahead.
“Everything is so unpredictable that it is hard to plan more than a year in the future. I am just having faith that my industry has stood the test of time for many years,” said Brandon Schuldt, owner of Carl's True Value in Connecticut.
The same volatility is influencing buyer expectations. Forty‑one percent (41%) of buyers anticipate business prices will rise next year due to inflation‑driven cost increases, while 18% expect prices to fall, 17% expect no change, and 24% remain unsure.
The 2026 small business transaction landscape is poised for greater activity on both the buy and sell sides. Broker sentiment is notably optimistic: 61% expect stronger buyer demand, while 72% anticipate more owners coming to market, driven largely by Baby Boomer retirements. Nearly half of brokers (49%) report that Boomers already make up the majority of their listings. Taken together, these forces create a meaningful tailwind, with 80% of brokers forecasting higher deal volume over the next six months compared to the same period last year.
“We expect deal volume to increase meaningfully as more owners consider exiting earlier due to the growing impact of AI, and as buyer demand accelerates with entrepreneurship‑through‑acquisition continuing to scale across business schools, media, and social channels,” said Jason Ward of TruView Business Advisors.
At the same time, the motivations behind seller activity reinforce just how personal and circumstance‑driven this market is. Owners planning to sell cite a range of reasons: 37% seeking a new opportunity, 30% preparing for retirement, 27% burned out, and 24% responding to economic uncertainty. Additional factors, such as health challenges, divorce, or partnership disputes, underscore how quickly the decision to sell can shift.
“The best time to sell your business is when you don't have to. Don't wait too long,” said Charles MacPherson of Inbar Group, Inc. in Maine
These motivations shape the priorities owners bring into the sale process. Of surveyed sellers, 44% want a fast, low‑stress sale, 28% are seeking top dollar, and 25% emphasize continuity and employee well‑being.
Interest Rates: Loud in the Headlines, Quiet in the Market
While interest rates will undoubtedly remain a dominant storyline in 2026 economic coverage, survey data shows they are far less influential on actual transaction behavior. Seventy-one percent (71%) of brokers say recent rate cuts have had no noticeable impact on buyer behavior, and an equal 71% advise cuts are not bringing more buyers back to the market. Similarly, 71% of brokers report buyers are not delaying transactions due to rates, with only 29% seeing hesitation.
“This is a myth that buyers sit around and wait for rate drops. Buyers buy,” said Max Friar of Calder Capital.
While interest‑rate chatter will remain present in the news cycle, the real drivers of deal flow are far more grounded – business performance, buyer readiness, and personal timelines. Rates may shape sentiment, but they are unlikely to materially constrain or accelerate transaction activity in 2026.
Guidance for Sellers: For owners considering an exit, it’s critical to get started now. With more sellers entering the market and buyers becoming increasingly sophisticated, owners who prepare early will be in the best position to succeed. That means clean tax returns, documented processes, and reduced owner dependence.
“There is no ‘perfect’ market to sell, only a prepared seller. Interest rates and buyer behavior matter, but readiness matters more. Owners who focus on what they can control such as financial performance, risk reduction, and clean reporting, put themselves in the strongest position regardless of market conditions," said Tanya Popov of INIX Consulting & Brokerage in Michigan.
Guidance for Buyers: Preparedness is equally important on the buy side. High quality listings continue to attract multiple offers, and buyers who are pre‑qualified for financing and can move quickly have a distinct advantage. Furthermore, buyers should consider operational potential, not just current‑state cash flow.
"Be prepared and be decisive. Good businesses are moving quickly and there are a lot of good, qualified buyers out there. Those Buyers who have their financing lined up, know what they’re looking for, and can act confidently tend to win," said Dave McGill of Murphy Business Sales - Utah.
If there is one constant in the business for sale market, it is resilience. Strong businesses find buyers in every economic cycle, and motivated buyers pursue ownership regardless of the headlines. Ultimately, the question for every participant - buyer or seller - is not whether the market will deliver opportunity. The question is whether they will be prepared to seize it.
In today's competitive market, successful buyers stand out by being prepared, decisive, and informed. Experts emphasize having a clear acquisition strategy, securing SBA pre‑qualification early, and acting fast when the right opportunity presents itself. Buyers who do their homework and evaluate potential beyond current financials are far more likely to find success. Above all, speed and credibility consistently separate serious buyers from those stuck in analysis paralysis.
Tobias C Kaiser, MSc, CIPS, Kaiser Associates, Inc, Realtors, Florida: "In a small business market, don't pretend to do a national M&A deal. Do your homework. Be prepared to close quickly on a good deal, with financing or cash at the ready."
Wayne Wright, Wright Business Advisors, Colorado: "Buyers should be clear on their criteria, financially prepared, and focused on durable cash flow rather than just revenue, while moving decisively but not emotionally. The best outcomes come from strong due diligence, thoughtful deal structure, and a clear plan for operating and growing the business after closing."
John Inzilla, Murphy Business Sales, New Jersey: "Do your research on the industries you are interested in and make sure you have experience or legitimate transferable experience. Understand your budget and get yourself pre-qualified by a lender in advance if you are planning on going the SBA route. Be realistic, reasonable and measured."
Jake McDonald, Calder Capital, Michigan: "Competing on price will be increasingly challenging in the coming years. Find your differentiator, whether it is industry expertise, being a local buyer, etc. and leverage it to stand out from the crowd."
Marty M. Fahncke, CMAA, Westbound Road, LLC, Kansas: "Don't hesitate, the good ones sell fast!"
David Strejeck, Sumtis Business Advisors, Pennsylvania: "I believe that the buyers are in the driver seat. I would recommend with them to explore all options of financing, short and long-term buyout with the seller and even partnerships with the ability to take over the business after period of time."
Charles MacPherson, Inbar Group, Inc., Maine: "Get together with an SBA lender and get a pre-approval before you go shopping. You'll be in a much stronger position and your offers will be treated more seriously."
Carson Bomar, Exit Game Plan, Florida: "Get organized. Build a well-written profile that conveys who you are accurately. Get pre-approved for SBA financing and prepare a personal financial statement. Openly provide those when signing an NDA with a broker. Doing this openly will vault you to the top of that broker's list as a serious buyer."
Tanya Popov, INIX Consulting & Brokerage, Michigan: "Value is being created through quality, not discounts. Buyers who focus on strong operations, clean financials, and growth potential rather than just price are finding better outcomes and smoother transitions."
Don Taylor, Foresight Business Brokers, Colorado: "Take it serious. Get lender pre-qualified. Identify the characteristics of a business you want. Make a plan and stick to it"
Susan Tanko-Manogue, WCI Business Sales, Arizona: "You are one of thousands. It's a Seller's market. Come with your best offer."
Rob Norris, Cardinal Business Brokers, North Carolina: "Be focused and figure out what kind of business you want. Don't use a shotgun approach and inquire on totally unrelated businesses of different sizes or you will be labeled as not a serious buyer."
Jason Ward, TruView Business Advisors, Texas: "Buyers should remain flexible and pragmatic in today’s market, particularly as competition has increased for strong, cash flowing businesses with minimal risk. Be prepared to move quickly and present clean, credible offers on high quality opportunities. At the same time, consider businesses that may trade at lower multiples due to identifiable risks or operational gaps that you are confident you can mitigate, as well as businesses with clear and achievable growth opportunities. This approach can create attractive value while avoiding overpaying in the most competitive segments of the market."
Caleb Seegers, Exceptional Business Advisors, Colorado: "In today's market, I'm seeing buyers who succeed are those who start with clarity about their goals and realistic expectations about cash flow multiples. Don't get caught up in analysis paralysis; focus on businesses with clean financials, transferable customer relationships, and systems that aren't entirely dependent on the current owner. Get your SBA pre-qualification done early so you're a serious contender when the right opportunity appears, and remember that most deals die in due diligence from surprises that could've been uncovered with better questions upfront. The best acquisitions I see happen when buyers look beyond the P&L to understand the actual operations, culture, and growth potential—then move decisively when the fundamentals check out. This isn't about finding the perfect business; it's about finding a good business you can make great."
Barbee Harris, Real Texas Properties Team, Texas Legacy Realty, Texas: "Due diligence is very important, request professional accountant documentation, SBA loans with a bank that has high rate of approval, and buy a business that is in the storage, manufacturing, AI, or 55+ older related industries."
AJ Ramsey, Transworld Business Advisors - Eastern NC, North Carolina: "Do your research - make sure you understand the industry and can speak knowledgeably about it to the business owner, and clearly articulate how you will effectively run the business. (Very important to retiring business owners). Make sure you have your funding lined up (and can validate it) before submitting an offer."
Matt Friscia, Transworld Business Advisors of La Grange, Illinois: "Stop waiting for the perfect business and remember, no business is 'absentee,' so stop trying to buy a business with limited involvement."
Andrew Stokely, Franchise Broker Group, Tennessee: "Underperforming franchise resales can be some of the best opportunities in the market and can be hidden gems - overlook them at your peril. They represent a great opportunity to enter a segment with greatly reduced debt service and often below the cost of a new franchise startup with the same systems and processes at your fingertips."
Angel Santiago, FCBB Orlando Metro, Florida: "Be confident and take care of the people you plan to hire, they will make a difference in the success of any future business you own."
Max Friar, Calder Capital, Michigan: "Get ready to show proof of funds. If you have to raise money, be upfront. Move quickly. Be willing to write an offer. I realize this sounds like dumb advice but many buyers freeze when it comes time to offer."
Adam Pratt, Atlantic Business Brokers, Maine: "Reach out to business brokers with listings in your target industries. I will add any legit buyer to my database once I receive an NDA from them, or following other reach out expressing interest. I recommend developing a relationship with someone like me, even though I generally represent sellers, as it builds trust early. If there are 2 buyers with identical offers on one of my listings, advantage often goes to the one I have spoken with."
Anna McDonough, Sin City Realty LLC, Nevada: "It is an attractive time to acquire a restaurant at a discounted valuation, but buyers must have sufficient capital and liquidity to carry the business until market conditions improve and demand normalizes."
Andrea Dangio, Restaurant Realty, California: "Get a reputable and experienced Business Broker. Pick an industry carefully. Do your due diligence. Negotiate fairly and know that running your own business requires knowledge in more than just one area. Hire professionals when your own experience is limited in critical aspects of the business. Early financial analysis, employee vetting, understanding tax laws and overall organization can make or break your success. Pay for help if necessary. Start right!"
Ben Shaw, Murphy Business Sales – Wilmington, North Carolina: "The perfect business rarely exists, expect to see some hair on the business."
Preperation is the key to success for sellers, in most cases 12–18 months ahead of going to market. Clean, accurate, and fully documented financials are critical to receiving maximum value while reduced owner dependency makes the business more attractive. Experts also stress maintaining strong performance during the sale process, highlighting growth opportunities, and being flexible on deal structure as buyers increasingly expect creative terms. Ultimately, sellers who treat their exit like a strategic project—not a last‑minute decision—tend to attract more qualified buyers, command better prices, and navigate smoother transitions.
Michael Finley, MBA, Infinity Business Brokers, Florida: "Get a valuation before going to market. 70% of businesses don't sell because a seller inflates pricing and buyers low-ball. With a good valuation, and SBA pre-qual, you have a defensible position to increase your opportunity to sell the business."
Tobias C Kaiser, MSc, CIPS, Kaiser Associates, Inc, Realtors, Florida: "Don't try to eat the cake twice - once while running the business (undeclared income) and once when selling (valuation based on undeclared income)."
Robert Marcarelli, Pi Business Brokers, Connecticut: "Start preparing early. Make sure your financials are in order and your business is not dependent on you."
Wayne Wright, Wright Business Advisors, Colorado: "Business sellers should prepare early by cleaning up financials, reducing owner dependency, and clearly articulating growth opportunities while maintaining strong performance through the sale process. The best exits come from realistic pricing, strong advisors, and a disciplined, confidential process that positions the business for a smooth transition."
John Inzilla, Murphy Business Sales, New Jersey: "Work with a professional to understand the value of your business. Make sure your financials are in order, clean and reportable. Now is generally better than later because accurate pricing, timing and some luck can happen today and maybe not next year."
Jake McDonald, Calder Capital, Michigan: "In a reality where business buyers are knocking on your door and flooding your inbox with inquiries your vision can quickly become blurred on the best sale route. Don't underestimate the value of a competitive auction process. A firm that can bring multiple offers to the table will typically have little problem generating a large enough premium on the valuation to make up for their fees."
Ranjeet Singh, Keller Williams, California: "Take the time to properly prepare the business for sale. Improving the physical look of the location or simply increasing the bookkeeping to ensure proper presentation to a potential buyer."
Steve Alexander, ABBEX, Florida: "It’s a great time to sell as we are getting multiple offers on all our businesses."
Thom Beckett, Front Range Business, Colorado: "Come to market before you become exhausted from ownership, and when you feel you have 1-2 years of 'gas in your tank' to stay engaged in the selling and operating of your business."
Adam Pratt, Atlantic Business Brokers, Maine: "Start early. It can take months to get their reporting cleaned up, so talk with a broker as soon as you start thinking about exiting."
Raymond P Dowd, PNW Business Brokers, LLC, Oregon: "Prepare 12-18 months in advance, interview several experienced, licensed brokers then listen to them. Provide clear answers to their questions, provide clean tax returns and P&Ls then accept the valuation."
Caleb Seegers, Exceptional Business Advisors, Colorado: "As a broker working with business owners daily, my biggest advice is to start preparing at least 12-18 months before you want to close—not when you're ready to list. Buyers are paying premiums for businesses with documented systems, clean financials that match tax returns, and recurring revenue streams that don't walk out the door with you. Get your books reconciled, your customer concentration below 20% if possible, and start transitioning key relationships so you're not the single point of failure. In this market, presentation matters enormously—a well-prepared CIM with clear growth opportunities will get you 2-3x more qualified buyers than a basic listing. Most importantly, understand that your business is worth what someone will pay for it, not what you need for retirement, so get a realistic valuation early and be willing to consider creative structures like seller financing or earnouts to bridge any gaps. The sellers getting top dollar right now are the ones who've treated their exit like a business project, not an emotional decision made when they're burned out."
Terri Stallworth, Florida Business Exchange, Inc., Florida: "Be realistic with your expectations and be flexible where you can. Offers may look differently in this climate, so though you may still achieve your desired sale price, it may not be all up front and at closing. Sellers may have to get comfortable with seeing some of their purchase price come over time, be it through seller-notes, forgivable notes, etc."
Susan Tanko-Manogue, WCI Business Sales, Arizona: "Due diligence is imperative. Get your books and records in order and be prepared to submit financials each month quickly until the deal closes."
Jay Offerdahl, Viking Mergers & Acquisitions, North Carolina: "Be mentally and emotionally prepared to sell to the first person you meet."
Tony Gonzales, Business Brokers of Arizona, Arizona: "The market is excellent for larger businesses that generate $500k and more in SDE. Lots of PEGs, Search Funds and Holding companies looking right now."
Patrick McAdams, Murphy Business Sales, Wisconsin: "If you are looking to sell now, hopefully you talked to an M&A professional 3 years ago to get your ducks in a row. It's very rare that I get clients that want to sell now that are ready to sell. Most need a year or two to get their business ready for sale."
Marty M. Fahncke, CMAA, Westbound Road, LLC, Kansas: "It's a sellers market. If you want 300 to 400 buyers competing to buy your business, now is a great time to sell."
Carson Bomar, Exit Game Plan, Florida: "Get your financials organized. Learn the KPIs of your business and understand those KPI's and how buyers will view them. Understand the strengths and weaknesses of your business and how to use that knowledge to defend your valuation."
The BizBuySell Insight Report is a nationally-recognized economic indicator that tracks the health of the U.S. small business economy. Each quarter, BizBuySell analyzes sales and listing prices of small businesses across the United States based on approximately 50,000 businesses for sale and those recently sold, reporting changes in closed transaction rates, valuation multiples and other economic indicators for the small business transaction market. Closed transactions are reported to BizBuySell.com on a voluntary basis by business brokers nationwide. Each report includes real small business data on over 70 major U.S. markets and across 65 small business industries.
BizBuySell is the largest business for sale marketplace online, receiving over a million visitors a month. Since 1996, BizBuySell has offered tools that make it easy for business owners and brokers to sell a business, and potential buyers to find the business of their dreams. The website also features an extensive franchise directory as well as an easy-to-use business valuation tool.
Adam Debussy
BizBuySell
Email: adebussy@bizbuysell.com
