In Q1 2026, a total of 2,345 businesses were bought and sold across the country, representing $2 billion in total enterprise value, according to the most recent BizBuySell Insight Report.

While overall transaction count edged down 1% compared to a year ago, it climbed 3% from Q4 2025 — and much of that quarter-over-quarter gain reflected deals delayed by the late-2025 federal government shutdown finally closing in early 2026. Even with some of the economic uncertainties, especially around the Iran war and rising fuel prices, the market remains active. Not surprising is that strong businesses are selling well with strong buyer interest, while businesses with lower or flat performance take longer to sell and are favoring buyers. 

Some of the key factors we are seeing:

• The service and manufacturing industries are the most desirable

• Tighter SBA lending standards are making some deals harder to close
• Corporate refugees and private equity groups are increasing competition in the small business markets

Service & Manufacturing Businesses are "Hot"

 Services dominate the landscape, accounting for 42% of all closed transactions in Q1. What’s notable isn’t just the volume — it’s the quality, as the median price for these businesses hit 13%. Within the sector, certain categories are drawing especially intense buyer interest in 2026: home services, technology-enabled businesses, sustainability-focused companies, and healthcare services. The common thread is resilience. These businesses serve essential needs, carry recurring revenue, and are less exposed to tariff uncertainty and import volatility than product-based businesses.

As for manufacturing, after a rough stretch defined by tariff rollouts, supply chain turbulence, and rising input costs, the sector snapped back sharply. Transaction volume jumped 16% year-over-year and surged 22% from Q4 2025 alone. Median sale prices leapt 52% quarter-over-quarter, while median cash flow rose 25% and median revenue climbed 53% — signaling that buyers aren’t just returning to manufacturing, they’re competing for it.

Tougher SBA Lending Requirements Impact Deals

Financing is one of the most decisive factors in whether a deal closes, and the new SOP that was effective as of March 2026 has tightened standards. This has a significant impact, as 67% of buyers plan to use an SBA loan to finance their transactions. The 10% downpayment requirement for an SBA(7)(a) loan has been tightened to limit the use of seller financing as part of the capital infusion, requiring a full standby for the life of the loan.

In addition, 100% of the business must be owned by US citizens, permanent residents are no longer eligible for this program. The key is to work with an experienced broker and lender to create a structure for the sale that works for both the seller and the buyer.

More Private Equity and Corporate Refugees Are in the Market

Because of the tighter SBA standards, the market is attracting more sophisticated buyers who are more well-capitalized. Increasing competition for quality businesses means that private equity groups are chasing smaller businesses while tightening their underwriting standards (which are also easier to do with AI). The competition is particularly high for service businesses with strong recurring revenue, as well as add-on acqusitions.

However, nearly 50% of buyers identified as corporate refugees, which is up from 44% just a year ago. Many of them have either left or been forced out of traditional positions, suffering from burnout, and are looking for more independence and life balance. Note: our owners, Art & Diane are corporate refugees themselves!

What This Means for Buyers & Sellers

Today's buyers are sophisticated, action-oriented, and largely not waiting on rate cuts — 65% report they aren't delaying their timelines, and they're focused on businesses with recurring revenue, strong cash flow, and low tariff exposure. With 67% planning to use SBA financing, arriving pre-qualified isn't just helpful — it's a competitive edge that separates buyers who close from those who don't.

The market is rewarding sellers who come prepared — businesses sold at 94% of asking price in 2025, and those with clean books, documented cash flow, and SBA-ready financials are attracting larger, more qualified buyer pools. The window is open now, but owners considering an exit in the next two to three years should start the preparation process today.

This is where Transworld comes in. Our experienced brokers know how to properly prepare your business for sale, market it effectively while also walking buyers through the purchase process, including helping them find the right financing for them. 

Schedule a FREE consutlation with one of our experienced brokers by clicking HERE.