Closed transactions in the US small business-for-sale market declined 1% in the first quarter of 2026 compared to the same period a year earlier, but rose 3% from the prior quarter as deals delayed by the federal government shutdown in late 2025 worked their way through to close, according to BizBuySell's Q1 2026 Insight Report.
The report describes the current market as bifurcated. Buyers are increasingly selective, paying premium prices for businesses with strong cash flow and consistent revenue, while demand for flat or declining performers has softened. Private equity activity is growing, particularly in service-based and recurring revenue businesses across home services, healthcare, and technology-enabled sectors.
A significant policy change took effect in March 2026 when new SBA citizenship requirements made it mandatory for all company owners seeking 7(a) and 504 loans to be US citizens. The rule excludes green card holders and foreign nationals from the program. Because most small business buyers depend on SBA-backed financing to fund acquisitions, the change has narrowed the pool of eligible buyers and is expected to affect deal volume in subsequent quarters.
Retail businesses posted better-than-average results in Q1, with median sale prices up 9% year-over-year to $262,500 and median cash flow rising 6% to $110,000. Retail businesses in the quarter traded at an average multiple of 2.9 times earnings, above the national average of 2.7 times.
Source: BizBuySell -- https://www.bizbuysell.com/insight-report/