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The IBBA® and M&A Source® Release Market Pulse Q2 2025 Survey Results

On August 7, 2025, the International Business Brokers Association (IBBA) and M&A Source published the results of their widely-anticipated Market Pulse Survey for the second quarter of 2025. This survey is pivotal in assessing the landscape of business sales, particularly those valued up to $50 million. As we dissect the latest findings, it becomes clear that while certain external factors such as tariffs might be discussed in boardrooms, they do not significantly dictate market trends for most business owners.

Key Takeaways from the Survey

The survey's results shed light on several important metrics:

Tariffs Impact on Market Timing

One of the notable revelations from the Market Pulse Q2 findings is that tariffs, whether existing or anticipated, are not a significant factor affecting the timing of sales for most businesses. Specifically, 82% of intermediaries reported that less than 20% of their clients are postponing their sales due to tariffs. Conversely, in the Lower Middle Market, this figure is slightly lower at 76%. A mere 2-3% of respondents noted that tariffs are delaying a majority of deals, suggesting this issue may be more alarmist than impactful for most stakeholders.

Market Confidence is Growing

The data indicates a swell of optimism among sellers, particularly in the Main Street market, with a noticeable year-over-year improvement. Businesses valued between $1 million and $2 million showcased a 14 percentage point increase in confidence, showing that 57% of those surveyed believe they are operating in a favorable selling environment. However, skepticism still lingers among owners of businesses valued above $2 million, portraying a mixed sentiment in upper echelons of the market.

Stability in Business Value

As for the valuations, median multiples in Q2 2025 remained quite stable. There were, however, some exceptions: the sub-$500K segment saw a jump to 2.3x—marking a rare instance above the 2.0x threshold. Notably, the $5 million to $50 million category showed recovery, bouncing back to 5.5x after a decline in Q1, reaffirming the demand from investors for robust, scalable assets.

Top Industries Leading the Market

Survey data from this quarter demonstrates a clear hierarchy in terms of industry performance. The construction sector continues to dominate, consistently leading the charge across both Main Street and Lower Middle Market sales. Other sectors, such as personal services, also showcased impressive performance, indicating a diverse range of opportunities across various business types.

Emily Bowler, Executive Director of the IBBA, emphasized the goal of the survey—to equip business intermediaries and their clients with actionable insights to facilitate successful transitions in business ownership. This initiative is especially pivotal as the market landscape evolves, driven by both economic conditions and the strategic decisions made by business leaders.

Methodology of the Survey

Conducted between July 1 and 15 of 2025, the survey secured responses from 326 business brokers and M&A advisors, who collectively completed 272 transactions during that quarter. This was the 53rd edition of the Market Pulse survey, and it promises to be a vital resource for understanding ongoing trends in business sales.

Looking Ahead

As we anticipate the next quarter’s results, the findings from the Q2 2025 survey remind us of the fluid nature of market conditions. Stakeholders must remain adaptable and informed, navigating both opportunities and challenges as they arise. Continued tracking of trends and evolving market sentiments will be crucial for intermediaries and clients alike.

For more regular updates, be sure to keep an eye on the quarterly releases from the IBBA and M&A Source, as they habitually provide a comprehensive look at the state of business market dynamics.