Q2 Business-for-Sale Market Cools as Buyers Assess Tariffs

Courtesy of BizBuySell Insight Report

Business-for-sale transactions slowed modestly in the second quarter of 2025, with sale prices trending lower and demand shifting in favor of buyers, according to BizBuySell, which tracks and analyzes U.S. business-for-sale transactions and sentiment from business owners, buyers, and brokers.

A total of 2,342 businesses changed hands in Q2 2025, down 4% from the same period last year, when easing inflation, stronger-than-expected 2.8% GDP growth, and heightened buyer confidence pushed transactions to a multi-year high.

This momentum continued into early 2025—until the Trump administration’s sweeping tariff announcements triggered uncertainty and slowed deal activity. Transactions are now just 1% lower than last quarter, as the market continues to adjust.

“The uncertainty around how tariffs will impact businesses that rely on imported products and how that affects the financial performance is causing buyers to hesitate,” said Dustin Zeher of Horizon Business Brokers, LLC.

At the same time, small business owners are grappling with dual pressures of elevated inflation and newly imposed tariffs driving up costs. Nearly half of surveyed owners (46%) report that tariffs have increased their costs, while 55% say inflation has yet to ease. In response, 66% have raised prices, though customer reactions are mixed.

“Some customers understand market pressures. Others struggle with the higher prices compared to what they paid in the past,” said Drew Vennemeyer, owner of Dwell Construction in Ohio.

This higher-cost environment appears to be impacting deal size. Q2’s completed deals generated $1.9 billion in total enterprise value, down 4% year-over-year and 6% from Q1, driven in part by a shift toward smaller transactions. The median sale price fell 6% year-over-year to $352,000, while median cash flow declined 2.6%. Median revenue held steady.

Meanwhile, 68% of small business owners say their customers are becoming more selective, focusing on essentials and cutting back on discretionary spending. These headwinds are prompting some to delay hiring, scale back growth plans, or postpone expansion efforts.

About the BizBuySell Insight Report

The BizBuySell Insight Report is a nationally-recognized economic indicator that tracks the health of the U.S. small business economy. Each quarter, BizBuySell analyzes sales and listing prices of small businesses across the United States based on approximately 50,000 businesses for sale and those recently sold, reporting changes in closed transaction rates, valuation multiples and other economic indicators for the small business transaction market. Closed transactions are reported to BizBuySell.com on a voluntary basis by business brokers nationwide. Each report includes real small business data on over 70 major U.S. markets and across 65 small business industries.

BizBuySell is the largest business for sale marketplace online, receiving over a million visitors a month. Since 1996, BizBuySell has offered tools that make it easy for business owners and brokers to sell a business, and potential buyers to find the business of their dreams. The website also features an extensive franchise directory as well as an easy-to-use business valuation tool.