Small Business Acquisition Market Defies Trade Tensions in Q3 Surge

Small Business Market Defies Political Uncertainty

Despite ongoing tariff tensions and political volatility, the small business acquisition market demonstrated remarkable resilience during the third quarter, according to industry reports. Buyers and sellers reportedly pushed forward with transactions ahead of potential market disruptions, including the government shutdown that would later freeze critical loan approvals.

Small Business Market Defies Political Uncertainty
Transaction Volume Accelerates Amid Economic Concerns
Price Trends Show Diverging Patterns
Sector Performance Varies Widely
Buyer Profile Shifts Toward “Corporate Refugees”
Policy Initiatives Show Mixed Impact
Fourth Quarter Outlook Clouded by Shutdown

Transaction Volume Accelerates Amid Economic Concerns

According to BizBuySell, an online marketplace that tracks U.S. business sales, closed transactions rose 8% year-over-year and 11% from the prior quarter. The report indicates buyers acted with unusual speed, with the typical business selling in just 149 days—the shortest turnaround since 2017 and a significant decrease from 176 days the previous quarter.

Analysts suggest this acceleration reflects concerns about potential market deterioration. “Sellers may be lowering expectations to move before conditions worsen,” the report states, noting that more than half of business owners reported increased expenses due to tariff policies and inflation.

Price Trends Show Diverging Patterns

While transaction volume increased, prices reportedly softened during the period. The median sale price fell 2% from a year earlier and 9% from the second quarter to $320,000, according to the analysis. This price decline occurred alongside the accelerated sales pace, suggesting sellers were willing to accept lower offers to complete transactions quickly.

Sector Performance Varies Widely

Service and retail businesses led the market growth, with acquisitions of service companies rising 11% year-over-year and retail deals increasing by 14%. Sources indicate buyers focused on practical, recurring-demand sectors like HVAC, plumbing, and landscaping, which are considered more resilient during economic uncertainty.

Manufacturing told a different story, with transactions falling 11% and the median sale price plunging 37% to $550,000. The drag reflects the very tariffs and trade volatility that define the broader economy, according to analysts. Many manufacturing deals have reportedly been delayed as buyers and sellers struggle to price the risk appropriately.

Buyer Profile Shifts Toward “Corporate Refugees”

The strong acquisition appetite reportedly stems partly from changing career preferences. Approximately 40% of buyers are described as “corporate refugees”—mid-career professionals seeking greater control over their work. For these buyers, economic uncertainty appears to serve as motivation rather than deterrent, according to market observers.

Policy Initiatives Show Mixed Impact

The manufacturing sector’s struggles come despite the Trump administration’s Made in America Manufacturing Initiative, announced in March 2025. The Small Business Administration reportedly stated the plan would cut $100 billion in regulation and expand access to loan programs. The initiative later delivered 100% expensing through the One Big Beautiful Bill Act signed on July 4, allowing smaller manufacturers to immediately deduct the full cost of new U.S. equipment., according to additional coverage

However, analysts suggest this support hasn’t yet translated into increased deal flow for the manufacturing sector, which continues to face headwinds from trade policy uncertainty.

Fourth Quarter Outlook Clouded by Shutdown

The report indicates the fourth quarter is likely to tell a different story. The renewed trade fight with China has increased uncertainty, while the government shutdown has frozen approval of loans backed by the Small Business Administration—a critical financing source for many small-business transactions. Market participants reportedly anticipate these factors could significantly impact deal volume in the coming months.