Is Now a Good Time To Sell Or Buy A Business?

Industry Spotlight: The Entreprenuer Boom of 2026

If you are wondering whether 2026 is the right time to buy or sell a business, the short answer is: It depends entirely on the quality of the business.

The business-for-sale market has officially entered a highly selective phase. The days of unstructured, high-multiple exits for average businesses have cooled, but for strong, high-earning companies, the market is as competitive as ever for buyers.

At Pacific Business Sales, we are seeing a distinct shift in the 2026 landscape. Our boots-on-the-ground experience along with the newly released BizBuySell Insight Report for Q2 2026, recent New York Times article about the small business boom, and the Small Business Trends article on increased buyer competition for high quality small businesses all point to a surge in demand for high quality business and cooling demand for under performing businesses or businesses with lower Discretionary Earnings (DE). Here is exactly what you need to know about the current market.

How Big Is Small Business?

When we break down the nearly 15.8 million businesses operating in the U.S., a staggering reality emerges: the vast majority of companies are under $5 million in annual revenue!

The Small & Midsize Business Reality:
Over 97% of all businesses in America generate less than $5 million in annual revenue, and this combined cohort contributes nearly a third (32%) of the total U.S. Gross Domestic Product.

While massive corporations (those over $100M) generate nearly half of the GDP value, they represent roughly one-fifth of one percent (0.21%) of the business population.

What We Are Seeing at PBS Brokers: Fewer, but Larger Transactions

Here at Pacific Business Sales, our internal data reflects a unique market evolution in 2026. Specifically, we are seeing four major trends:

1. Listings and Transactions are Down: Overall deal volume and the number of new listings have decreased compared to last year.
2. Transaction Dollar Values are Up: While there are fewer transactions happening, our average transaction dollar value is significantly higher than it was in 2025.
3. Buyers Want Premium Cash Flow: We are seeing buyers who are absolutely hungry for high-quality, high-earning businesses with strong Discretionary Earnings (DE) and EBITDA.
4. SBA Lenders (Banks) are tightening their belts: Lenders and banks are mirroring buyer sentiment, focusing their capital almost exclusively on higher-quality, lower-risk deals.

Simply put: It is a market of fewer, but much larger and higher-quality transactions.

National Trends: Insights from the Q2 2026 BizBuySell Report

The trends we are seeing locally at PBS Brokers are strongly echoed on a national level. According to the newly released BizBuySell Q2 2026 Insight Report, the U.S. market is being defined by a “value over volume” dynamic.

Here are the key takeaways from the Q2 report:

• Acquisitions Dropped 10%, But Demand Remains Strong: Nationwide, closed transactions dropped 10% quarter-over-quarter and year-over-year. However, brokers report that this isn’t due to a lack of buyers—it’s due to a shortage of quality businesses on the market. Qualified buyers are abundant, but they are being incredibly strategic about what they purchase.
• Valuations Hold Firm for Good Businesses: Because buyers are flocking to premium listings, the businesses that did sell were of higher quality. The average cash flow multiple actually increased 2% year-over-year (to 2.7x), proving that buyers are willing to pay a premium for stability and operational resilience.
• Financing is the Major Hurdle: Just as we are seeing banks focus on higher-quality deals, BizBuySell reports that tighter credit conditions and stricter SBA lending requirements are the biggest bottlenecks of 2026. Because SBA financing is harder to secure, seller financing is increasingly becoming the bridge needed to get deals across the finish line.
• The Rise of the “Corporate Refugee”: 46% of today’s buyers identify as “corporate refugees” pursuing independence. Combined with a massive surge in Search Funds and Entrepreneurship Through Acquisition (ETA), the buyer pool is highly educated, well-capitalized, and fiercely competitive.

What This Means for Sellers in 2026

If you own a business with strong DE and EBITDA, clean financials, and a management team in place, you are in a seller’s market.

Because of the shortage of high-quality inventory, premium businesses are commanding intense buyer interest and higher multiples. However, preparation is no longer optional—it is a prerequisite. To successfully exit in 2026, you must:

• Ensure SBA Eligibility: Getting your business pre-qualified for SBA financing is one of the biggest drivers of marketability. If banks like your business, buyers will too. At Pacific Business Sales we pre-qualify our new listings with top SBA PLP (Prefered Lending Program) lenders.
• Consider Seller Financing: With banks getting stricter, offering even a modest seller note can drastically increase buyer confidence and ensure a successful close.
• Clean up your financials: Buyers are scrutinizing profit margins, inflation impacts, and owner reliance more deeply than ever before.

What This Means for Buyers in 2026

If you are looking to buy, you need to understand that you are not just shopping—you are competing.

Do not listen to the social media narrative that buyers currently hold all the leverage. For high-earning, SBA-prequalified businesses, sellers are firmly in control. To stand out and win a deal, you must come to the table completely prepared. This means having your proof of funds ready, securing your own SBA pre-qualification, and working with an experienced advisory team to move quickly when the right opportunity arises.

The Bottom Line

2026 is an incredible time to sell a highly profitable business, and a great time to buy if you are looking for long-term cash flow stability over speculative growth.

Whether you are looking to acquire a high-EBITDA company or you want to know what your business could sell for in today’s selective market, Pacific Business Sales is here to help you navigate it.

Navigation and Advisory Support for Selling Your Business

Navigating transactions within the heavy industries requires highly specialized valuation and structuring expertise. Pacific Business Sales specializes in lower-middle-market business sale transactions specifically within the industrial sectors, including manufacturing, construction, specialty service contractors, and distribution.

With over two decades of market experience, the firm provides factual business valuations, manages complex asset/equipment appraisals, and assists parties in structuring deals that align with the new 2026 SBA capital requirements. For owners seeking a confidential market assessment or buyers evaluating an industrial acquisition, Pacific Business Sales offers the technical oversight required to cross the finish line in today’s economic climate.