{"id":843191,"date":"2025-04-24T09:11:50","date_gmt":"2025-04-24T14:11:50","guid":{"rendered":"https:\/\/newsycanuse.com\/index.php\/2025\/04\/24\/small-business-sales-hold-steady-in-q1-amid-rising-prices-and-tariff-concerns-bizbuysell-reports\/"},"modified":"2025-04-24T09:11:50","modified_gmt":"2025-04-24T14:11:50","slug":"small-business-sales-hold-steady-in-q1-amid-rising-prices-and-tariff-concerns-bizbuysell-reports","status":"publish","type":"post","link":"https:\/\/newsycanuse.com\/index.php\/2025\/04\/24\/small-business-sales-hold-steady-in-q1-amid-rising-prices-and-tariff-concerns-bizbuysell-reports\/","title":{"rendered":"Small Business Sales Hold Steady in Q1 Amid Rising Prices and Tariff Concerns, BizBuySell Reports"},"content":{"rendered":"
\n

The U.S. small business market maintained steady momentum in the first quarter of 2025, according to BizBuySell\u2019s latest Insight Report, with 2,368 businesses sold and a total enterprise value exceeding $2 billion\u2014a 9% increase over Q1 2024. Despite looming uncertainty surrounding new tariffs, deal volume grew 2% quarter-over-quarter, as buyers pursued high-performing businesses and prices climbed 4% to a median sale price of $349,000.<\/p>\n

Following a dip at the end of 2024, transactions rebounded in January, climbing 4% amid optimism over anticipated tax cuts, lower interest rates, and deregulation. However, policy uncertainty under the new administration soon tempered that momentum. Transactions slowed by 5% in February and 2% in March, while median time on market increased 15% year-over-year to 198 days.<\/p>\n

\u201cQ1 of 2025 definitely picked up speed compared to Q4 of last year\u2026 Overall, Q1 felt more energized and productive, and it\u2019s looking like a great start to a big year,\u201d said Charles Patawaran of Gatsby Advisors Brokerage.<\/p>\n

Tariff announcements from President Trump triggered concern among buyers and sellers, particularly in import-reliant industries.<\/p>\n

\u201cTariff announcements have added a layer of uncertainty for both buyers and sellers,\u201d said Kinzie Jones of Sunbelt Business Advisors.<\/p>\n

Despite delays, buyer demand remained strong. Median cash flow rose 6% to $160,000 and revenue increased 3% to $700,000. Buyers gravitated toward recession-resistant and high-margin businesses.<\/p>\n

\u201cIf a seller has a stable or growing business\u2026 that business will be a rocket ship on the market,\u201d said Max Friar of Calder Capital.<\/p>\n

Tariffs were viewed as both risk and opportunity.<\/p>\n

\u201cBuyers may find good opportunities when a business has pricing power and can easily pass on the impact of tariffs,\u201d said Vipin Singh of Murphy Business Sales.<\/p>\n

Among surveyed business owners, 37% reported increased costs due to tariffs. Of those, 57% passed costs on to customers, and 46% saw reduced sales. Twenty-six percent reported lower profitability, while 34% said it was too early to assess full impact.<\/p>\n

\u201cThe uncertainty about tariffs and policy is far worse than the actual impact of them,\u201d said Ryan Hemmert of Washington Business Brokers.<\/p>\n

Manufacturing saw notable growth amid reshoring trends. Median sale prices in the sector surged 54% to over $1 million, with cash flow and revenue up over 50% year-over-year. New tariffs on steel and aluminum contributed to the shift.<\/p>\n

\u201cHigh demand for domestic manufacturing capacity\u2026 led to significantly more deals,\u201d said Raymond P. Dowd of PNW Business Brokers.<\/p>\n

The service sector also saw a modest 2% gain in closed deals but reported 5% declines in both sale price and revenue. Essential services like healthcare and auto repair remained in demand.<\/p>\n

\u201c[Tariffs] have created nervousness and uncertainty. Buyers are looking for service businesses not as likely to be impacted,\u201d said Art Warsoff of Transworld Business Advisors.<\/p>\n

Retail and restaurant sectors continued to struggle under consumer cutbacks. Restaurant transactions dropped 4% while retail fell 7%, with both sectors reporting lower financials. However, some buyers saw this as opportunity.<\/p>\n

\u201cI think in this year there will be great opportunities\u2026 that\u2019s managerially broken that I can fix,\u201d said James Williams, a buyer in South Carolina.<\/p>\n

Seller financing emerged as a critical tool for dealmaking. While 62% of brokers see it as very important, only 19% of sellers intend to offer it.<\/p>\n

\u201cSeller financing is uncertainty\u2019s friend, and we live in uncertain times,\u201d said Max Friar.<\/p>\n

Looking ahead, BizBuySell reports that economic uncertainty and recession concerns are shaping buyer and seller strategies in 2025. However, a surge of retiring business owners and adaptable buyers are expected to keep the market active.<\/p>\n

\u201cNow is an excellent time to sell,\u201d said Friar. \u201cValues are at their peak, take advantage of that,\u201d added Katrina Loftin of M&A Business Advisors.<\/p>\n

As the year unfolds, the Insight Report suggests preparation, adaptability, and awareness of industry dynamics will be essential for both buyers and sellers navigating a complex market environment.<\/p>\n

Image: BizBuySell<\/small><\/em><\/p>\n

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Read More<\/a>
\n Joshua Sophy<\/p>\n","protected":false},"excerpt":{"rendered":"

The U.S. small business market maintained steady momentum in the first quarter of 2025, according to BizBuySell\u2019s latest Insight Report, with 2,368 businesses sold and a total enterprise value exceeding $2 billion\u2014a 9% increase over Q1 2024. Despite looming uncertainty surrounding new tariffs, deal volume grew 2% quarter-over-quarter, as buyers pursued high-performing businesses and prices<\/p>\n","protected":false},"author":1,"featured_media":843192,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[378,135],"tags":[],"class_list":{"0":"post-843191","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-business","8":"category-small"},"aioseo_notices":[],"_links":{"self":[{"href":"https:\/\/newsycanuse.com\/index.php\/wp-json\/wp\/v2\/posts\/843191","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/newsycanuse.com\/index.php\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/newsycanuse.com\/index.php\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/newsycanuse.com\/index.php\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/newsycanuse.com\/index.php\/wp-json\/wp\/v2\/comments?post=843191"}],"version-history":[{"count":0,"href":"https:\/\/newsycanuse.com\/index.php\/wp-json\/wp\/v2\/posts\/843191\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/newsycanuse.com\/index.php\/wp-json\/wp\/v2\/media\/843192"}],"wp:attachment":[{"href":"https:\/\/newsycanuse.com\/index.php\/wp-json\/wp\/v2\/media?parent=843191"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/newsycanuse.com\/index.php\/wp-json\/wp\/v2\/categories?post=843191"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/newsycanuse.com\/index.php\/wp-json\/wp\/v2\/tags?post=843191"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}