The IBBA® and M&A Source® Announce the Results of the Market Pulse Q1 2025 Survey

INDEPENDENCE, Ohio, May 27, 2025 /PRNewswire/ -- Today, the International Business Brokers Association^® (IBBA) and M&A Source^® release the findings of the Market Pulse Q1 2025 Survey. This quarterly survey reports the latest research in dealmaking trends for Main Street businesses (values $1M-$2M) and the Lower Middle Market (values $2M-$50M). Tracking median multiples year-over-year, from Q1 2022-2025, the survey reveals a downtick (up to a full point) for the Lower Middle Market market. Multiples remained consistent across the Main Street market with a slight uptick for businesses in the $500K-$1M range.

Additional Key Findings in the Market Pulse Q1 2025 Survey Include:

Seller's Market Confidence

• Despite economic uncertainty, advisors reported an uptick in seller confidence in Main Street and the Lower Middle Market.
   
• Tracking Seller's Market Sentiment in Q1, from 2016-2025, the survey reports the third consecutive quarter of increasing confidence for businesses in both segments (since the most-recent low point in Q1 2023).

Path to Ownership and Exit 

• Business intermediaries revealed that a majority of their recent clients (60%) were entrepreneurs who had started their own business, while the remainder acquired their business—through purchase (32%), inheritance (8%) or other means.
   
• Respondents also reported that 90% of their recent sell-side clients were first-time sellers and fewer than 5% of their clients had a written exit strategy in place before their initial meeting.

"With 90% of recent sellers being first-timers and most lacking a formal exit strategy, it's clear many owners are approaching a significant financial event unprepared. This lack of planning means many sellers are leaving money on the table and jeopardizing their hard-earned legacy. Engaging experienced advisors early isn't a luxury; it's a critical safeguard to protect your financial future and ensure a successful transition." – Scott Bushkie, Managing Partner, Cornerstone Business Services.

The Q1 2025 survey was conducted April 1-15, 2025, and was completed by 358 Business Brokers and M&A Advisors. Respondents completed 300 transactions this quarter. This is the 52nd edition of this report.

Follow the Market Pulse Survey every quarter for the latest trends and insights. 

About the International Business Brokers Association^®

Formed in 1984 and with nearly 3,000 members, the International Business Brokers Association^® (IBBA) is the largest international not for profit association for business brokers. The association provides business brokers with education, free benefits, conferences, professional designations, support programs and networking opportunities, and awards the Certified Business Intermediary (CBI)^® designation to qualifying business brokers. To learn more, contact the IBBA directly at [email protected].

About M&A Source^®

M&A Source^® is the leading not for profit association for individuals and firms engaged in lower middle market business transactions. The association provides education, benefits, conferences, support programs and networking opportunities, and awards the Mergers & Acquisitions Master Intermediary^® (M&AMI^®) designation to qualified advisors. For additional information, contact M&A Source directly at 216-243-0030.

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SOURCE IBBA