BizBuySell's Q1 2026 Insight Report recorded 2,345 closed small business transactions with a combined enterprise value of $2 billion, marking a 3% quarterly gain despite a 1% year-over-year decline in overall deal volume. The Q4 2025 dip reflected delayed closings from the federal government shutdown, with pent-up activity clearing into Q1 2026.
Manufacturing led sector gains with transactions up 16% year-over-year, though median sale prices declined 23% to $775,000 as smaller, underperforming manufacturers entered the market. Service businesses showed stronger financial performance, with median sale prices rising 13% to $350,000 and median revenue climbing 8% to $568,956 compared to Q1 2025.
Generational patterns dominated the buyer and seller landscape. Gen X and millennials now represent more than 75% of business owners and over 80% of buyers, as baby boomer retirements push a growing supply of businesses into the market. Institutional buyer activity increased in the $1 million to $10 million enterprise value range, with PE-backed search funds and family offices competing alongside individual buyers for quality, cash-flowing businesses.