An Insider's Report: What's the Condition of the Business-for-Sale Marketplace?

Report compliments of William Bruce

Whether you’re buying or selling a privately held business, or just want to keep up with what’s going on in the market, this article contains timely information on the condition of the business-for-sale marketplace.

The most authoritative source of accurate quarterly information for this private marketplace is the Market Pulse Report, a survey conducted jointly by the International Business Brokers Association and the Mergers & Acquisitions Source.

The membership of both organizations is comprised of full-time professionals in the private business-for-sale marketplace. The following information is reproduced from the most recent survey of the membership conducted recently for the first quarter of 2026.

For the full report, please click here.

In General

Seller confidence showed an uptick, approaching prior peaks in the Lower Middle Market (above $2 million on business value), though still trailing peak levels in Main Street
Valuation multiples remained broadly consistent with prior periods, with slight increases in the $500K–$1M and $1M–$2M ranges, while larger transactions ($2M–$50M) held steady
Final transaction values as a percentage of asking price/benchmark maintained their previous levels
Average number of offers per business sale held steady, and
Cash at close and seller financing levels continued in a consistent pattern
Overall, 43% of advisors reported stronger transaction activity over the past 12 months, compared to 21% reporting weaker conditions, reinforcing a view of a market that remains active despite some mixed signals.

Valuation Multiples

Multiples the first quarter of 2026 are broadly consistent with prior periods, with slight increases in the $500K–$1M and $1M–$2M ranges. Larger transactions ($2M–$50M) held steady.
The higher the valuation, the more buyers are competing for a business. While smaller transactions under $500k frequently receive just one or two offers, the bidding war heats up for larger assets. This quarter, 83% of transactions over $5 million attracted at least 3 offers, with 18% attracting an impressive 10+ bids.

Financing Trends

Cash at close stayed relatively consistent over the last four quarters. (Cash at close includes senior debt and buyer equity.) Seller financing accounted for roughly 10-16% of most transactions in the first quarter 2026, except for the $5M+ sector where seller financing was just 5%.
“The encouraging signal this quarter is that the core drivers of remain intact. We’re seeing stable multiples, consistent structures, and a modest uptick in seller confidence—all signs of a market that continues to function well despite some macro uncertainty.” – James Parker, 2026 IBBA Chairman of the Board

Time to Close

The average time to sell a Main Street business (up to $2 million in value) varies from 6 to 9 months. Businesses in the Lower Middle Market tend to average a 9 to 12-month sales cycle.
“The timeline to close continues to require discipline from buyers, sellers, and brokers. There is a trend to not rush through diligence, financing, and final negotiations. Buyers are taking all the time they need.” –Eric J. Gall, Broker/Founder, Edison Business Advisors

In Summary

According to this latest survey of professionals with real-time, in-depth knowledge, the business-for-sale marketplace metrics are stable, and the results are within normal quarterly variations.

Author’s disclaimer: William Bruce is a member of both the International Business Brokers Association and the M&A Source. He participated in this survey. To see the full detailed report, please click here.

For further reading, here are additional articles on the issues of business valuation and ownership transfer:

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William Bruce is an Accredited Business Intermediary (ABI) and Senior Valuation Analyst (SVA), assisting buyers and sellers of privately held businesses in the transfer of ownership. He currently serves as president of the American Business Brokers Association. His practice includes consulting services nationally on issues of business valuation and transfer. With offices in Fairhope, Alabama and Baton Rouge, Louisiana, he may be reached at (251) 990-5934 (Fairhope), 225-465-5799 (Baton Rouge) or by email at Will@WilliamBruce.org.