The IBBA® and M&A Source® Announce the Results of the Market Pulse Q3 2025 Survey
INDEPENDENCE, Ohio, Nov. 18, 2025 /PRNewswire/ -- Today, the IBBA® and M&A Source® present the Market Pulse Q3 2025 Survey, reporting on market conditions for businesses being sold in Main Street (values $0-$2MM) and the Lower Middle Market (values $2MM -$50MM). Key findings include a generational breakdown of buyers and sellers, and top industries for M&A activity. In addition, median multiples over the last three quarters are reported. While valuations for businesses under $1 million remained relatively steady quarter-over-quarter, mid-market deals showed mild improvement.
The Generational Hand-off Has Begun
The Q3 report includes a unique generational breakdown of buyers and sellers, highlighting how younger buyers are stepping into a market still largely dominated by Baby Boomer owners.
- Baby Boomers continue to dominate the sell-side, making up nearly 60% of current business owners bringing companies to market. Another 27% are Gen X, while Millennial and Gen Z sellers together account for just 7%. In other words, most deals still involve longtime owners exiting after decades of growth, not younger founders moving on to their next venture.
- On the buy-side, however, the age curve bends sharply younger. Millennials and Gen Z make up large portions of search funders (45%) and serial entrepreneurs (58%), signaling a new generation of professional buyers eager to acquire and scale. Even at the corporate level, nearly a third of C-suite buyers are under 45.
Business Value
While valuations for businesses under $1 million remain relatively steady quarter-over-quarter, mid-market deals showed mild improvement. Median Multiples over the last three quarters were reported.
- Multiples rose 0.3 points for companies valued between $1 million and $2 million, and 0.1 points for those in the $2–$5 million range.
- Larger transactions ($5–$50 million) dipped slightly compared to Q2, but remained 0.8 points higher than at the start of 2025, suggesting stability at the top end.
Top Industries for M&A Activity Q3 2025
Overall, this quarter's M&A activities display a diverse range of industries attracting investment. Personal Services and Construction remain strong players in the Main Street market. Manufacturing and Construction led in the Lower Middle Market.
"The national Market Pulse survey is conducted to provide high-value insights on market conditions so business intermediaries and their business-owner clients can achieve maximum results during the business sale process." – Emily Bowler, Executive Director, International Business Brokers Association®
The Q3 2025 survey was conducted October 1-17, 2025 and was completed by 300 Business Brokers and M&A Advisors. Respondents completed 247 transactions this quarter. This is the 54th edition of the survey.
Follow the Market Pulse Survey every quarter for the latest market intelligence.
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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