According to Bizbuysell's most recent insight report, the US market for small businesses was sold in the first quarter of 2025 with 2,368 stores, and a total value of companies over $ 2 billion. Sales price of USD 349,000.
After a break -in at the end of 2024, the transactions recovered in January and increased by 4%, which increased to optimism over the expected tax cuts, lower interest rates and deregulation. The political uncertainty in the context of the new administration soon alleviated this dynamic. The transactions slowed down by 5% in February and 2% in March, while the average time on the market rose 15% to 198 days compared to the previous year.
“The first quarter of 2025 definitely reached the speed compared to the fourth quarter of last year. Overall, the first quarter felt more energetic and productive and looks after a big year,” said Charles Patawaran from Gatsby Advisors Brokerage.
President Trump's tariff terminations triggered the concern between buyers and sellers, especially in the import-dependent industries.
“Both buyers and sellers have added a layer of uncertainty,” said Kinzie Jones von Sunbelt Business Advisors.
Despite delays, the demand from the buyers remained strong. The mean cash flow rose 6% to $ 160,000 and sales rose by 3% to $ 700,000. Buyers approached recession resistant and high margins.
“If a seller has a stable or growing business … this business will be a rocket ship on the market,” said Max Friar from Calder Capital.
The tariffs were regarded both as a risk and as opportunities.
“Buyers may find good chances if a company has inexpensive power and can easily pass on the effects of tariffs,” said Vipin Singh from Murphy Business Sales.
37% increased costs due to tariffs. Of these, 57% of the costs went to customers and 46% reduced sales. Twenty -six percent reported on lower profitability, while 34% gave that it was too early to evaluate the full effects.
“The uncertainty about tariffs and politics is far worse than the actual effects of them,” said Ryan Hemmert from Washington Business Brokers.
In production, remarkable growth in the middle of transport trends recorded. Medium sales prices in the sector rose by 54% to over $ 1 million, with the cash flow and sales of more than 50% compared to the previous year. New tariffs on steel and aluminum contributed to the shift.
“A high demand for domestic transactions … led to significantly more shops,” said Raymond P. Dowd from PNW Business Brokers.
The service sector also recorded a modest profit of 2% in closed offers, but reported a 5% decline in both the sales price and in sales. Essential services such as healthcare and car repair were still required.
“[Tariffs] have created nervousness and uncertainty. Buyers are looking for service companies that are not so likely to be affected, ”said Art Warsoff from Transworld Business Advisors.
Retail and restaurant sectors continued to fight under the cuts of consumers. The restaurant transactions went by 4%, while retail fell by 7%. Both sectors reported lower financial data. However, some buyers saw this as an opportunity.
“I think there will be great opportunities this year … This is a manager that I can repair,” said James Williams, a buyer in South Carolina.
The financing of the sellers became a critical instrument for dealmaking. While 62% of the brokers consider it very important, only 19% of the sellers intend to offer it.
“The financing of the sellers is the friend of uncertainty and we live in uncertain times,” said Max Friar.
With regard to the future, Bizbuysell reports that economic uncertainties and recession concerns develop buyers and seller strategies in 2025. However, an increase in retired business owners and adaptable buyers is expected to keep the market active.
“Now is an excellent time for sale,” said Friar. “Values are at its peak, use it,” added Katrina Loftin from M&A Business Advisors.
In the course of the year, the Insight Report is proposed that the preparation, adaptability and awareness of the industry dynamics will be of essential importance for both buyers and sellers who navigate a complex market environment.
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