A total of 2,345 small businesses were bought and sold in Q1 2026 with a combined enterprise value of $2 billion, according to BizBuySell's Q1 2026 Insight Report. Total transaction volume declined 1% year-over-year but posted a 3% gain over Q4 2025, as deals delayed by the federal government shutdown in late 2025 closed in the early weeks of 2026.
Manufacturing was the standout sector of the quarter. Transactions in manufacturing rose 16% year-over-year and 22% sequentially over Q4, while the median sale price in the sector jumped 52%. Median cash flow grew 25% and median revenue climbed 53%, signaling renewed buyer confidence in manufacturing assets after a difficult 2025 marked by aggressive tariff rollouts and supply chain disruptions.
Market-wide, the median sale price held steady at $350,000 -- unchanged from the prior year -- while median cash flow grew 3% to $165,256 and median revenue rose 2% to $713,404. The average cash flow multiple increased 3% to 2.7x. The overall picture reflects a market that is stable but sorting: businesses with pricing power commanded premiums while commodity businesses sat.
A significant policy change now affects buyer financing. Since March 2026, new SBA citizenship rules require all owners seeking 7(a) and 504 loans to be U.S. citizens, disqualifying green card holders and foreign nationals from participating in the program. The restriction has tightened an already competitive buyer pool.
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Source: BizBuySell -- https://www.bizbuysell.com/insight-report/