Values in mid-market business sales are improving, and younger buyers are stepping into an M&A market that is still largely dominated by Baby Boomer owners, according to a recent survey conducted by two leading M&A professional organizations.

The Q3 2025 “Market Pulse” survey was released November 18 by the International Business Brokers Association® (IBBA) and M&A Source®. The survey was conducted October 1-17 and completed by 300 business brokers and M&A advisors nationwide. Respondents completed 247 transactions this quarter.

Generational Trends. The survey’s 54^th edition includes a revealing generational breakdown of buyers and sellers.

On the sell-side:

•       Baby Boomers continue to dominate, making up nearly 60% of current business owners bringing companies to market.
•       Gen X sellers account for 27% of business sales, while Millennials and Gen Z sellers combined make up 7%.

“Most deals still involve longtime owners exiting after decades of growth,” the survey concluded, “not younger founders moving on to their next venture.”

In contrast, on the buy-side, “the age curve bends sharply younger,” the survey reports. “Millennials and Gen Z make up large portions of search funders (45%) and serial entrepreneurs (58%), signaling a new generation of professional buyers eager to acquire and scale. Even at the corporate level, nearly a third of C-suite buyers are under 45.”

At IBG Business, we, too, see search-funders in that age range, and we are seeing younger people in strategic buyers’ business development departments.

A typical profile for a younger search-funder is someone who has an MBA or often military command experience (a great background for running the management side of a business), has 10-15 years of experience, and is ready to go the entrepreneurial route.

The downside to dealing with such buyers is that they lack committed funds. That puts them at a disadvantage to older, more established buyers who are able to write checks and do not need financing contingencies.

Values Stable. Mid-market deals showed mild improvement, quarter over quarter, while valuations for businesses under $1 million remained relatively steady. The survey contrasted current findings with median multiples over the last three quarters.

Larger transactions – $5 million to $50 million – dipped slightly compared to the second quarter but remained 0.8 points higher than at the start of 2025, “suggesting stability at the top end.”

Meanwhile, mid-market deals reportedly showed mild improvement. For companies valued between $1 million and $2 million, multiples rose by 0.3 point, while transactions for the next tier ($2 million to $5 million) saw values tick up by 0.1 point.

At IBG, the majority of our deals fall into the “larger transactions” range – $5 million to $50 million – and generally we are seeing similar results. There is still a very large pool of capital looking to find a home, and good companies will attract buyers. However, there is only so much a buyer can pay and still achieve the returns promised to its investors, and that reality is keeping a lid on multiples.

Attractive Industries. “Overall, this quarter's M&A activities display a diverse range of industries attracting investment,” the survey revealed, with Personal Services and Construction continuing their strength in the Main Street market and Manufacturing and Construction leading in the Lower Middle Market ($2 million to $50 million).

This is where IBG’s recent experience differs from the survey results.

First, as we noted earlier, the majority of our deals are at a higher price range – upwards of $150 million.

Second, we continue to see strong demand across a wide range of industries. In addition to manufacturing, construction, and, to a lesser degree, personal services, we consistently receive indications of interest from buyers for businesses in our niche industries (aviation, car wash, and oil and gas) and:

•       health and medical
•       business services
•       retail
•       technology
•       transportation (including trucking)
•       wholesale distribution.

About the Survey and Its Sponsors. “The national Market Pulse survey is conducted to provide high-value insights on market conditions,” commented IBBA executive director Emily Bowler, “so business intermediaries and their business-owner clients can achieve maximum results during the business sale process.”

Business owners can follow the Market Pulse Survey every quarter for the latest market intelligence.

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 and M&A advisors. The IBBA awards the Certified Business Intermediary (CBI)^® designation to qualifying professionals and provides members with education, free benefits, conferences, professional designations, support programs, and networking opportunities.

M&A Source^® is the leading not-for-profit association for individuals and firms engaged in lower middle market business transactions. It provides education, benefits, conferences, support programs, and networking opportunities, and awards the Mergers & Acquisitions Master Intermediary^® (M&AMI^®) designation to qualified advisors.

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