INDEPENDENCE, Ohio, Aug. 7, 2025 /PRNewswire/ — Today, the IBBA® and M&A Source® announce the results of the Market Pulse Q2 2025 Survey, tracking the latest trends in business sales up to $50M. The data suggests that while tariffs (current or anticipated) may influence some industries, they are not a primary driver of market timing decisions for most business owners. Additional key findings report on market confidence, median multiples and top industries. The quarterly IBBA® and M&A Source® Market Pulse Survey is created to understand the market conditions for main street and lower middle market businesses.
Additional Key Findings in the Market Pulse Q2 2025 Survey Include:
Tariffs Not a Major Factor in Seller Timelines
The Q2 2025 Market Pulse report surveyed business intermediaries on how tariffs are affecting clients’ decisions to go to market. The results were clear: tariffs may affect certain sectors, but they are not a widespread drag on M&A activity.
- In the Main Street market, 82% of respondents said that fewer than 20% of their clients are delaying a sale due to current or future tariffs.
- In the Lower Middle Market, that figure was nearly as high at 76%. Very few respondents — just 2% to 3% — reported that tariffs were delaying a majority of their client deals.
Market Confidence Remains Split
Overall, the market is marked by growing optimism.
- Respondents reported the largest year-over-year improvement among businesses valued between $1M–$2M (a 14 percentage point uptick), with 57% believing they’re in a favorable seller’s market.
- For those who own businesses valued above $2 million, confidence continues to edge upward, but Main Street sellers remain hesitant.
Business Value
Median multiples held relatively steady in Q2 2025, with two notable exceptions.
- The sub-$500K segment edged up to 2.3x — a rare occurrence above the 2.0x mark.
- The $5M–$50M category rebounded to 5.5x, recovering from a dip in Q1 and reinforcing investor demand for quality assets at scale.
Top Industries: Construction Leads
Every quarter, Market Pulse data highlights the dynamic landscape of business sales across different deal values. Construction and engineering continue to dominate across the M&A landscape, from the smallest Main Street deals to the Lower Middle Market. Personal services also stand out as a top performer.
“Our goal with the Market Pulse data is to provide cutting-edge market insights so business intermediaries and their clients can achieve successful business ownership transfers.” – Emily Bowler, Executive Director, International Business Brokers Association®
The Q2 2025 survey was conducted July 1-15, 2025, and was completed by 326 business brokers and M&A advisors. Respondents completed 272 transactions this quarter. This is the 53rd edition of the survey.
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.
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.
[Website]
https://www.ibba.org
[Social Media Handles]
Facebook – https://www.facebook.com/profile.php?id=61558428497579
Twitter – https://twitter.com/_SellYourWay
Instagram – https://www.instagram.com/_sellyourway/
LinkedIn – https://www.linkedin.com/company/103495058/admin/feed/posts/
Pinterest – https://pin.it/47ytLpWzo
SOURCE IBBA
