Real Data, Not Guesswork
If you've been sitting on the fence about when to sell, the data that just came out should get your attention. The IBBA (International Business Brokers Association) and M&A Source released their Q1 2026 Market Pulse Survey at the end of June — a quarterly read on what's actually happening in business sale transactions, based on real closed deals reported by 300 brokers and M&A advisors nationwide. Not asking prices. Not opinions. What businesses actually sold for.
I share highlights from this report with buyers and sellers regularly because it's one of the few sources that shows real transaction data instead of guesswork. Here's what the Q1 2026 numbers say, and what it means if you're thinking about selling a business in Los Angeles this year.
The Headline: Buyer Demand Is Real Right Now
The single most important number in this report, if you're a seller: 83% of businesses that sold for more than $5 million drew three or more competing offers. Eighteen percent drew ten or more.
That's not a soft market. That's real, active buyer demand chasing a limited supply of quality businesses — and it lines up with what I'm seeing directly with Los Angeles buyers right now, particularly for well-run businesses in home services, healthcare, and manufacturing.
Seller confidence also ticked up in the quarter, approaching prior peaks in the lower middle market ($2M–$50M range). Brokers aren't just optimistic — they're reporting it because they're closing deals and watching multiple offers come in.
What Businesses Actually Sold For in Q1 2026
The report breaks out median valuation multiples by deal size, based on 203 actual closed transactions:
| Deal Size | Median Multiple | Metric Used |
|---|---|---|
| Under $500K | 2.0x | SDE |
| $500K – $1M | 2.8x | SDE |
| $1M – $2M | 3.0x | SDE |
| $2M – $5M | 4.0x | EBITDA |
| $5M – $50M | 4.0x | EBITDA |
A couple of things worth understanding here. First, notice the metric shift: Main Street deals under $2M are valued on SDE (Seller's Discretionary Earnings — your total economic benefit as a working owner), while deals above $2M shift to EBITDA (earnings after a market-rate manager is factored in). If you're not sure which bucket your business falls into, that's exactly the kind of question a broker opinion of value answers before you go to market.
Second, multiples in the $500K–$1M and $1M–$2M ranges saw a slight increase this quarter, while the larger deal bands held steady. That's a meaningful signal for Los Angeles owners in that lower Main Street range — it's a better time to be selling than it's been in a few quarters.
What This Means by Industry (LA-Specific)
I work primarily with home services, healthcare and med spa, manufacturing and wholesale, and professional services businesses across Southern California. Here's how the national data lines up with what I'm seeing locally:
Home services (HVAC, plumbing, electrical, insulation). Buyer demand for these businesses remains strong nationally and in LA specifically — recurring maintenance revenue and service contracts are exactly the kind of predictable cash flow buyers are competing for right now.
Manufacturing and wholesale. This sector stayed among the most active categories for buyer interest in Q1. If you're a manufacturing or wholesale business owner in Southern California sitting on solid margins and a stable customer base, this is a strong window to be testing the market.
Healthcare and med spa. Multi-provider practices and businesses with an MSO structure continue to draw premium interest, consistent with the broader healthcare M&A trend nationally.
Professional services. With multi-year contracts and diversified client bases, these businesses are well-positioned in a market where buyers are paying up for predictability.
One More Data Point Worth Knowing
Nearly seven in ten advisors (67%) reported no material AI impact on valuation yet this quarter. If you've been wondering whether AI disruption is already showing up as a discount on business values — it isn't, not broadly, not yet. That could change, but it hasn't yet.
What This Means If You're Considering a Sale
Data like this doesn't mean every business is a hot commodity — buyers are still disciplined, and the fundamentals still matter: clean financials, owner independence, customer diversification, a defensible lease. What it does mean is that qualified buyers are actively competing for well-prepared businesses, multiples in the Main Street range are holding or improving, and waiting on the sidelines has a real opportunity cost if your business is ready.
Find Out Where Your Business Stands
Not a rule-of-thumb calculator — an actual broker opinion of value based on current LA buyer activity and real transaction comps. Confidential, and at no cost.
Start My Free Valuation →If you want to know where your business would land in today's market, that's a conversation I'm glad to have. Book a confidential call here.
Source: IBBA & M&A Source Market Pulse Survey, Q1 2026 — survey of 300 business brokers and M&A advisors reporting 203 closed transactions, conducted April 1–16, 2026.