INDEPENDENCE, Ohio, Feb. 24, 2026 /PRNewswire/ — The International Business Brokers Association® and M&A Source® present the Market Pulse Survey Report Q4 2025. The quarterly survey is conducted to gain an accurate understanding of the market conditions for businesses being sold in Main Street (values up to $2MM) and the Lower Middle Market (values $2MM -$50MM). The Q4 2025 survey was conducted January 1-15, 2026 and was completed by 350 Business Brokers and M&A Advisors. Key findings: Intermediaries are optimistic heading into 2026. Nearly three-quarters (72%) expect market conditions to be on par with (23%) or stronger than (49%) the 2021 peak. Trends reported include: top industries for transaction activity; the most active buyers; seller’s market sentiment and deal financing.
Business Environment Trends
Business intermediaries are optimistic heading into 2026. Nearly three-quarters (72%) expect market conditions to be on par with (23%) or stronger than (49%) the 2021 peak.
- In the near term, sentiment is also positive. More than half of survey participants (54%) expect deal volume to increase over the next three months.
- At the same time, expectations around pricing remain grounded: 71% anticipate multiples will hold steady. Intermediaries focused on the Lower Middle Market (LMM) expressed the most optimism for valuations, with 26% predicting an increase.
2025 Top Industries
According to the Market Pulse survey, the top industries for transaction activity for all of 2025 were:
- Personal Services – salons and spas, childcare, pet grooming, dry cleaning, gyms, etc.
- Restaurants – another consistent mainstay of Main Street transactions
- Construction – #1 in LMM and a leading area of activity for Main Street; this industry is seeing significant rollup
- Business Services – a leading area of activity for both Main Street and the LMM
- Manufacturing – not among top five in Main Street, but a leading player in the LMM
2025 Active Buyers
Individual buyers dominated the Main Street market in 2025. Calculating responses for all four quarters, the survey reports that first-time buyers made 46% of Main Street acquisitions followed by serial entrepreneurs at 32%. This is on trend.
Individual buyers made their mark in the Lower Middle Market as well, at 44% of acquisitions (26% first time buyer, 18% serial entrepreneurs). Private equity made about one fifth of the acquisitions in this market, on trend year-over-year.
Market Confidence
Respondents continue to report rising seller confidence, with the Lower Middle Market sitting solidly in a seller’s market. A seller’s market typically translates to increased values and more-favorable deal terms for the seller.
Financing Deals
In Q4 2025, sellers averaged between 76% to 89% cash at close. (Cash at close includes senior debt and buyer equity).That means most sellers walked away with the bulk of their deal value upfront. Seller financing remains a common tool to bridge valuation gaps, while earnouts and retained equity were used sparingly.
“The 55th edition of the national Market Pulse survey was conducted with the intent of providing a valuable resource to business owners and their advisors — so they can achieve optimal results. Providing quality information on a quarterly basis, the report is the go-to source for insights on Main Street and Lower Middle Market transactions.” – Emily Bowler, Executive Director, International Business Brokers Association®
Follow the Market Pulse every quarter to stay informed on the trends shaping the market.
About The International Business Brokers Association®
Formed in 1984 and with more than 3,000 members, the International Business Brokers Association® (IBBA) is the largest international not for profit association for business brokers. The association provides business brokers with education, free benefits, conferences, professional designations, support programs and networking opportunities, and awards the Certified Business Intermediary (CBI)® designation to qualifying business brokers. To learn more, contact the IBBA directly at admin@ibba.org.
About M&A Source®
M&A Source® is the leading not for profit association for individuals and firms engaged in lower middle market business transactions. The association provides education, benefits, conferences, support programs and networking opportunities, and awards the Mergers & Acquisitions Master Intermediary® (M&AMI®) designation to qualified advisors. For additional information, contact M&A Source directly at 216-243-0030.
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SOURCE IBBA
