So far, this year has been solid for business owners who want to sell their businesses. According to the BizBuySell Insight Report for the first quarter of 2025, 2,368 businesses were sold, up 9% over Q1 2024 and 2% from Q4 2024.
Sales popped in January (closed transactions rose by 4%), likely driven by “optimism around lower taxes, reduced interest rates, and fewer regulations under the incoming administration.”
And then, with the tariff tumult, transactions declined in February (by 5%) and March (by 2%). According to the Insight Report, “Deals took more time to close, with businesses sitting on the market 15% longer compared to 2024, increasing from a median of 172 to 198 days.”
The Insight Report shows Q1 buyers “focused on high-quality businesses and were willing to pay a premium. The median sale price reached $349,000, up 4% from last year.
“If a seller has a stable or growing business that is maintaining its margins and is somewhat shielded from AI or potential tariffs, that business will be a rocket ship on the market. Buyers will flock… Conversely, if you are in a business that is likely to be disrupted in the next year and your 2024 performance faltered, it may be fairly painful for you on the market,” says Max Friar, managing partner and CEO of Calder Capital.
Report From the Business Brokers
Many brokers (47%) closed more deals in Q1 2025 than in Q1 2024, primarily driven by a surge in buyers (30%) and a strong demand for thriving businesses (21%). If you’re in the market for a business, Ryan Hemmert of Washington Business Brokers says you need to be prepared. “Buyers need to be organized, responsive, and ready to act when they see the right opportunity.”
What are business buyers looking for? According to the Insight Report, 75% of those surveyed seek stable, recession-resistant businesses, 54% look for thriving companies, and 21% are open to underperforming or turnaround opportunities. Profitability is top of mind for 49% of buyers, with 12% primarily focused on growth potential.
Who’s buying?
Many are corporate refugees, “seeking financial independence (77%), more control over their careers (72%), better work-life balance (54%), and an escape from corporate politics (44%).”
2025 Market Outlook
BizBuySell says the “Silver Tsunami” of retiring baby boomers will help drive market activity, further fueled by business buyers entering the market in record numbers.” But, the Insight Report concludes, “Policy uncertainty, especially around tariffs and trade, continues to cast a shadow.” Plus, there are concerns over inflation, interest rates, and economic growth, with 60% of business owners and 58% of buyers believing a recession is either underway or imminent.
The BizBuySell Insight Report for Q1 contains so much more vital information that you should be sure to check it out.
Rieva Lesonsky is President of Small Business Currents, LLC, a content company focusing on small businesses and entrepreneurship. While you can still find her on Twitter @Rieva, you can also reach her @Rieva.bsky.social and LinkedIn. Or email her at Rieva@SmallBusinessCurrents.com.
Chart courtesy BizBuySell
