Fewer Small Businesses Are Selling, but the Ones That Sell Cost More

Fewer small businesses sold this summer, and the typical sale price went up. BizBuySell, an online marketplace for buying and selling businesses, counted 2,132 sales in the third quarter of 2026. That is 7% fewer than a year ago. The median price rose 17% to $350,000. The jump does not mean every business is worth more.

What changed

BizBuySell says the higher median comes mostly from a bigger share of larger, more profitable businesses among the sales. Businesses that sold for more than $1 million made up a record 22% of deals. Those sales rose 8% from a year earlier, while sales below $1 million fell 10%.

• Above $1 million: median price $1.8 million, median cash flow $559,000
• Below $1 million: median price $250,000, median cash flow $123,000
• Larger deals closed at an average 100.8% of asking price, versus 93.6% for smaller ones

Buyers are pickier

Confidence is slipping on both sides. On BizBuySell's 0 to 100 index, buyer confidence fell from 52 to 49 and seller confidence from 48 to 47. Among buyers, 31% said the biggest obstacle is a lack of quality businesses for sale. Nearly half thought the businesses on the market were overvalued.

Still, deals are happening. Some 73% of brokers said activity was stable or stronger than the previous quarter. One New Jersey broker said buyers are selective and want answers to detailed questions before making an offer.

Who is selling, and what

Service companies made up 47% of sales, with 992 deals, the highest quarterly level since the second quarter of 2022. Their median price was $350,000, up 21%. Manufacturing prices rose 58% to $807,000, but with only 105 sales. The report warns that this reflects the businesses that sold, not a 58% gain for every manufacturer.

Consumer-facing businesses had a harder time. Retail sales fell 12% to 417, and restaurant sales fell 23% to 358. Median prices still rose, by 13% and 7%.

What to do

For owners who may sell someday, the lesson is not to chase a $1 million price. It is to make the business easy for a buyer to check and take over. That means clear revenue and expense records, documented processes, and a company that does not depend on the owner for every decision.

The report also found that 68% of small business owners use AI, up from 55% a year earlier. Among users, 76% said it improved performance.