The Business Market Is Shifting – Here's What You Need to Know

As a business broker, I spend every day working with owners who are trying to understand one critical question: what’s my business worth, and is now the right time to sell?

The recently released Q2 2025 BizBuySell Insight Report gives us a clear snapshot of what’s happening in the market right now. Based on over 50,000 listings and transactions, the data shows that we’re entering a more challenging environment for sellers, but one full of opportunities for those who are well-prepared.

The most recent report confirms what I’m seeing day‑to‑day across the country: deal flow remains healthy, but the market has shifted. Buyers are more selective, valuations are adjusting, and lenders are scrutinizing cash flow and structure more closely than they did a couple of years ago. None of that is a reason to sit on your hands. It simply means preparation and positioning matter more than ever.

What’s changing on the sell side? 

In short: expectations and evidence. Serious buyers are still out there and they’re well‑capitalized, but they’re prioritizing businesses with clear, defensible earnings and operational resilience. If you plan to sell in the next 6–18 months, invest your time in getting your financials airtight. That means accurate P&Ls and balance sheets, sensible add‑backs, month‑over‑month cash‑flow visibility, and documentation that reduces surprises in diligence. Price still matters, but proof matters more. The businesses commanding strong outcomes right now are the ones that show consistent cash flow, repeatable processes, diversified customers, and a credible transition plan.

What’s winning with buyers? 

The theme is stability. Buyers nationwide continue to zero in on “boring but beautiful” companies—steady service providers, essential local operators, and recurring‑revenue models. These aren’t fads; they’re durable businesses with predictable cash generation. If you own a company like this, the market is paying attention. If you’re a buyer, sharpen your criteria, get pre‑qualified with lenders, and be ready to move quickly when a strong deal surfaces. Good businesses don’t linger just because overall volume has cooled.

Financing and deal structure are back in the spotlight.

Lenders are asking tougher questions about cash‑flow coverage and post‑close operating plans, and that’s healthy for everyone. Creative, balanced structures—think reasonable seller notes, holdbacks tied to objective milestones, and transition support—can bridge valuation gaps without sacrificing deal quality. If you’re selling, consider how a thoughtful structure can de‑risk the transaction for your buyer and pull your deal to the front of the line. If you’re buying, come prepared with a realistic capital stack and a 100‑day operating plan that shows exactly how you’ll protect (and grow) cash flow from day one.

Valuation: what actually drives your multiple? 

Multiples don’t move in a vacuum. They respond to the quality of earnings, the consistency of demand, customer concentration, key‑person risk, documented processes, and the depth of your team. Two businesses with identical revenue can trade very differently if one relies on a few customers and the other has sticky, recurring revenue and clean handoffs. If you want a better outcome, start reducing concentration, documenting SOPs, tightening pricing discipline, and building leadership bench strength now—not after you go to market.

If you’re considering a sale in the next year, here’s where to focus in the next 30–60 days: 

reconcile your financials and lock down defensible add‑backs; map your top ten customers and mitigate any single‑point dependencies; document core processes (from sales to fulfillment to billing); refresh key contracts and assignability language; and outline a transition plan that makes a buyer confident your success will continue without you. This work doesn’t just help you sell—it usually improves your business even if you decide not to.

If you’re a buyer, make yourself the offer sellers want to accept.

Clarify your acquisition criteria (industry, size, geography, and risk profile), get your lender conversations done early, line up an experienced diligence team, and be decisive when you find the right fit. In a market where strong businesses still attract multiple offers, speed plus substance wins.

My Takeaway

While national trends show a cooler market, there is still significant opportunity for both buyers and sellers right now. The difference comes down to preparation.

For sellers, it’s about being transparent, pricing appropriately, and positioning your business to appeal to today’s buyers. For buyers, it’s about knowing what you’re looking for and being ready to move when the right opportunity comes along.

If you’re considering selling your business or want to better understand how these trends might impact you, I’d be happy to have a conversation. Every business is different, and having a strategy in place now could help you achieve the best possible outcome when you decide to make a move.

Contact me directly, and I’ll share a quick readiness checklist and a no‑pressure perspective on your options.

— Jim Shaub

Principal Broker, Tennessee Business Brokers