Q1 2025 Small Business Sales Insights: What Business Owners Need to Know Before Selling

The first quarter of 2025 showed us one thing clearly: the small business market is moving—but only for those who know how to navigate it.

According to BizBuySell’s Q1 Insight Report, transaction volume held steady year-over-year, but the real story is in how—and where—buyers are deploying capital. While overall enterprise value exceeded $2 billion for the quarter (up 9% YoY), sellers are facing longer deal timelines, closer buyer scrutiny, and a shifting SBA lending environment.

As a Tennessee business broker, I speak to business owners every day who are asking the same thing:

“Is now the right time to sell?”

The answer: it depends on how well your business is prepared.

Here are the key takeaways every business owner should know from Q1’s market data:

💡 1. Serious Buyers Are Still Paying Premiums—for the Right Business

The median sale price rose to $349,000 (+4%) and median cash flow grew 6%. If you’ve built a recession-resistant business with strong margins, buyers are still willing to pay top dollar—even with tariffs and economic uncertainty in the mix.

🛑 2. Tariffs and SBA Lending Are Slowing Down Deal Speed

With new tariffs introduced by the current administration and updated SBA rules starting June 1st, 2025, the time to close a deal has jumped from 172 to 198 days. If you're planning to sell soon, now is the time to get your financials in order, talk with a broker, and create a strategy to minimize these delays.

🔧 3. Seller Financing Is Becoming a Deal-Maker

SBA lenders are tightening their guidelines, and seller financing is often what seals the deal. Yet only 19% of owners plan to offer it. That could be a missed opportunity—especially if you’re looking to attract serious, qualified buyers.

🏗 4. The Silver Tsunami Is Real

Retiring baby boomers continue to drive a wave of supply, while corporate refugees are entering the market in record numbers. These buyers are highly motivated, cash-ready, and seeking businesses they can step into immediately. Your business could be the perfect fit for one of them—if you position it correctly.

✅ 5. Now Is the Time to Prepare

Whether you're planning to exit in 6 months or 3 years, the best time to start preparing is yesterday. Clean books, clear growth opportunities, and minimized risk are what today’s buyers are hunting for.

Selling isn’t just about listing—it’s about timing, positioning, and strategy. I work with owners across Tennessee to prepare for an exit that’s not only profitable but purposeful.

Let’s talk about your business and what your timeline could look like. Give me a call to schedule a free confidential consultation today.

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Jim Shaub

Tennessee Business Broker

Helping business owners sell smarter and exit stronger.