Q3 2025 Small Business M&A Market Report: Trends & Insights

The Market Is Evolving- Not Collapsing
The latest BizBuySell Q2 2025 Insight Report shows a modest 4% year-over-year dip in small business transactions, with a 1% decline from the previous quarter. However, this slowdown is largely concentrated in the manufacturing sector, which saw a 28% drop in activity due to tariff-related uncertainty and supply chain pressures.

Sellers Still in Strong Position- If Prepared
Retail and service-based businesses are performing well. Retail transactions increased 2% from Q2 last year, and the median sale price rose 13% per the BizBuySell report. Service businesses saw a 7% rise in sales volume, reflecting strong buyer demand in segments like healthcare, logistics, and home services.

While the median overall sale price dipped 6% to $352,000, this decline is driven by smaller deal sizes and less manufacturing activity- not a lack of interest. Buyer demand remains strong, particularly for recession-resistant businesses with solid financials and consistent performance.

Navigating New SBA Lending Rules
New SBA lending rules are introducing more complexity to deal structures. Sellers should be aware of new requirements that limit how seller financing can be used as part of the buyer’s down payment. Despite these changes, deals are still getting done- especially when sellers are flexible and well-prepared with clean financials and organized documentation.

Buyers Are Motivated- and Well-Prepared Businesses Sell
Buyers are adapting, with many getting prequalified and assembling deal teams in advance. A growing number- up to 45%- are career professionals seeking stability through business ownership. Inventory remains tight, which is creating competition for high-quality listings.

Inventory Is Low- That’s Good for You
With many baby boomer owners still holding off on retirement, there’s less inventory available. That’s great news for sellers who are ready- fewer listings mean less competition and more attention from serious buyers.

Thinking of Selling? Now’s a Smart Time to Explore It
While overall volume may be slightly down, the market for strong, well-run businesses remains active. Businesses that are financially sound, not overly reliant on the owner, and positioned in stable industries are still attracting serious buyers and commanding strong valuations.