Quarterly Highlights
- Transaction volume declined 10% from both Q1 2026 and Q2 2025.
- Business valuation multiples remained stable.
- Financing has become a major obstacle to closing transactions.
- Buyer demand continues to exceed the supply of quality businesses.
- Preparation is becoming the greatest competitive advantage for sellers.
Although completed business acquisitions declined during Q2 2026, the market remained resilient. Approximately 2,117 businesses sold with total enterprise value of about $1.8 billion. Valuation multiples held firm, demonstrating that quality businesses continue to command premium prices.
Buyers have become increasingly disciplined, focusing on recurring cash flow, earnings durability, transferable operations, and SBA financing eligibility rather than revenue growth alone.
Corporate professionals, search funds, and ETA buyers continue to fuel demand. The challenge today is not finding buyers—it is finding businesses that meet today’s higher underwriting and due diligence standards.
Nearly 78% of buyers expect to use SBA financing. Businesses that qualify generally attract more qualified buyers and enjoy greater marketability.
Only 14% of business owners have obtained a professional valuation. Owners who prepare well in advance with strong financial reporting and realistic expectations are positioned to maximize value.
From our perspective, the market has shifted from one driven by timing to one driven by preparation. Understanding value several years before a sale remains one of the best investments an owner can make.
