The U.S. business-for-sale market is booming.
According to the latest report from BizBuySell, which hosts a marketplace of businesses for sale, 2,368 businesses were sold in the U.S. in the first quarter of 2025. They represented a total value of $2 billion, a 9% increase in value from the same period a year prior.
“The new year came with a surge of momentum,” Charles Patawaran of Gatsby Advisors Brokerage told BizBuySell. “Overall, Q1 felt more energized and productive, and it’s looking like a great start to a big year.”
The report found that the price, cash flow, and revenue of businesses sold were all higher this year than at the same time last year. The median sale price of a business reached $349,000 in the first quarter of the year, a 4% year-over-year increase, while median cash flow grew by 6% to $160,000 and median revenue increased by 3% to $700,000.
It wasn’t all smooth sailing, however. Though business sale transactions grew 4% in January, reflecting optimism for tax cuts and deregulation, they slowed in February and March. Deals took longer to close during the quarter, with businesses lingering for a median of 198 days on the market compared to 172 days a year earlier.
Kinzie Jones of Sunbelt Business Advisors stated in the report that tariff announcements, which added “a layer of uncertainty for buyers and sellers,” were responsible for the longer wait times before a transaction. President Donald Trump has levied tariffs of up to 145% on imports from China, and a tariff of 10% for other countries until July.
“While not halting deal flow, they [tariffs] have increased costs for import-reliant businesses and caused some buyers to scrutinize financials more carefully,” Jones stated.
Nearly two out of five business owners (37%) surveyed by BizBuySell reported increased costs due to tariffs, with 17% facing supply chain disruptions. Meanwhile, the majority of business buyers surveyed by the outlet (75%) are primarily looking for stability in the businesses they purchase.
Some industries are faring better on the market than others. For example, the report notes that sales of manufacturing businesses grew by 3% in Q1, and median sale prices increased by 54% to over $1 million. The growth arrives as the U.S. Small Business Administration approves more manufacturing loans under the Trump administration than in 2021 and launches a Made in America Manufacturing Initiative to create a pipeline of workers for manufacturing jobs.
Meanwhile, retail and restaurant businesses reported fewer buyers for the first quarter of 2025. Restaurant deal volume was down 4%, while retail deals fell 7% year-over-year.
According to the U.S. Chamber of Commerce’s Small Business Index for Q1 2025, small businesses reported being most concerned about inflation and revenue. Over six in ten small businesses said their business was in good financial health during the quarter.
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Sherin Shibu