INDEPENDENCE, Ohio, June 30, 2026 /PRNewswire/ -- The IBBA^® and M&A Source^® announce the Market Pulse Survey Q1 2026 results, reporting high-value insights on businesses being sold — up to $50M. The data points to a market that is aware of AI but not yet repricing around it. Nearly seven in ten advisors (67%) report no material impact on valuation. Additional key findings indicate strong buyer interest in Q1 — with 83% of deals over $5 million attracting at least 3 offers, and 18% attracting an impressive 10+ bids. This quarterly national survey is conducted with the intent of providing a valuable resource to business owners and their advisors.

AI: In The Conversation, Not Yet In The Multiple
The data points to a market that is aware of AI but not yet repricing around it.

• Nearly seven in ten advisors (67%) report no material impact on valuation.
• Only a modest share seeing upside (12%) and very few seeing downside (3%).
• Another 15% say it's simply too early to tell.

This suggests that AI has not yet translated into consistent valuation premiums or discounts in the Lower Middle Market. In sectors where automation could disrupt core functions, buyers may begin to differentiate between companies that can leverage AI and those whose models are less exposed. That distinction is not yet showing up clearly in valuations, but it may be an emerging lens.

Transaction Mix By Deal Sector
The industry mix offers a window into how that thinking may be playing out. Personal services continue to show up across all deal sizes, alongside steady demand for construction, manufacturing, and distribution businesses in the Lower Middle Market. These are sectors where demand is tangible, operations are understood, and performance is easier to project. In that context, the consistency of personal services may reflect a broader buyer preference for businesses with durable, human-centered demand.

Quarterly Activity
Q1 2026 M&A market indicators point to continued steadiness, with pockets of renewed momentum: Seller confidence showed an uptick, approaching prior peaks in the Lower Middle Market, though still trailing peak levels in Main Street. Valuation multiples remained broadly consistent with prior periods, with slight increases in the $500K–$1M and $1M– $2M ranges, while larger deals ($2M–$50M) held steady.

• Final transaction values as a percentage of asking price/benchmark maintained their previous levels.
• Average number of offers per deal held steady
• Cash at close and seller financing levels continued in a consistent pattern

Overall, 43% of advisors reported stronger transaction activity over the past 12 months, compared to 21% reporting weaker conditions, reinforcing a view of a market that remains active despite some mixed signals.

"The quarterly IBBA and M&A Source Market Survey is created to gain an understanding of the current market conditions for businesses being sold in Main Street (values $0-$2M) and the Lower Middle Market (values $2M-$50M). Our goal is to provide expert insights for business intermediaries and business owners so they can achieve the best outcomes in ownership transfers." – Emily Bowler, Executive Director, International Business Brokers Association^®

The Q1 2026 survey was conducted April 1-16, 2026 and was completed by 300 business brokers and M&A advisors. Respondents completed 203 transactions this quarter. This is the 56 edition of this report.

Follow the Market Pulse Survey every quarter for the latest trends and actionable insights.

About the International Business Brokers Association^® Formed in 1984 with more than 3,000 members, the International Business Brokers Association^® (IBBA) is the largest international not for profit association for business brokers. The association provides business brokers with education, free benefits, conferences, professional designations, support programs and networking opportunities, and awards the Certified Business Intermediary (CBI)^® designation to qualifying business brokers. To learn more, contact the IBBA directly at admin@ibba.org.

About M&A Source^® M&A Source^® is the leading not for profit association for individuals and firms engaged in lower middle market business transactions. The association provides education, benefits, conferences, support programs and networking opportunities, and awards the Mergers & Acquisitions Master Intermediary^® (M&AMI^®) designation to qualified advisors. For additional information, contact M&A Source directly at 216-243-0030.

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SOURCE IBBA