According to Bizbuysell’s latest insights report, the US SME market remained stable in the first quarter of 2025, with 2,368 companies on sale, up 9% from the first quarter of 2024. $349,000.
Following DIP at the end of 2024, transactions recovered in January, rising 4% amid optimism about expected tax cuts, low interest rates and deregulation. However, policy uncertainty under the new administration quickly eased that momentum. Trading slowed by 5% in February and 2% in March, but median market time rose 15% year-on-year, up 198 days.
“The first quarter of 2025 definitely increased speed compared to last year’s fourth quarter. Overall, the first quarter feels more energetic and productive, and it looks like a great start to a big year.”
The announcement of tariffs from President Trump has sparked concerns among buyers and sellers, particularly in import-dependent industries.
“The announcement of tariffs added a layer of uncertainty for both buyers and sellers,” said Kinzie Jones of Sunbelt Business Advisors.
Despite the delays, buyer demand remained strong. Median cash flow rose 6% to $160,000, while revenue rose 3% to $700,000. Buyers were drawn to a margin business that could withstand the recession.
“If the seller has a stable or growing business, that business will become a rocket ship in the market,” said Max Frier of Calder Capital.
Tariffs were viewed as both risk and opportunity.
“Buyers may find good opportunities when they have pricing power in their businesses and can easily communicate the impact of tariffs,” says Vipin Singh, Murphy’s Business Sales.
Of the employers surveyed, 37% reported increased costs due to tariffs. Of this, 57% handed the costs to customers, and 46% reduced sales. 26% reported a decline in profitability, while 34% said it was too early to assess the full impact.
“Uncertainty about tariffs and policy is far worse than their actual impact,” said Ryan Hemert, a Washington business broker.
Manufacturing has seen significant growth amid the trend of repurposing. Median sales prices for the sector increased by 54% to over $1 million, with cash flows and revenues rising by more than 50% year-on-year. New tariffs on steel and aluminum contributed to the shift.
“The high demand for domestic manufacturing capacity has led to a significant number of transactions,” said Raymond P. Dowd, PNW business broker.
The Services sector also reported a 5% decline in both sales prices and revenue, although it saw a mere 2% increase in closed transactions. Important services such as healthcare and auto repair remain in demand.
“[Tariffs] It created tension and uncertainty. “We’ve been working hard to get the most out of our lives,” said Art Warsoff of Transworld Business Advisors.
The retail and restaurant sectors continued to struggle under consumer cuts. Restaurant trading fell by 4%, retailers fell by 7%, with both sectors reporting lower finances. However, some buyers saw this as an opportunity.
“I think there’s a great opportunity this year…it’s broken management that I can fix,” said James Williams, a buyer in South Carolina.
Seller fundraising has emerged as an important tool for trading. 62% of brokers think it is very important, but only 19% of sellers intend to provide it.
“Seller fundraising is a friend of uncertainty and we live in times of uncertainty,” Max Frier said.
Looking ahead, Bizbuysell reports that economic uncertainty and recession concerns are shaping buyers and sellers’ strategies in 2025. However, a surge in retirement business owners and adaptable buyers is expected to drive the market.
“Now is the best time to sell,” Friar says. “The value reaches its peak and take advantage of it,” added Katrina Loftin, M&A business advisor.
As the year unfolds, the Insights report suggests that preparation, adaptability, and perception of industry dynamics are essential for both buyers and sellers navigating complex market environments.
Image: Bizbuysell
