Business Exit & Acquisition Statistics 2026
Key data points on business exits, EBITDA multiples, acquisition timelines, and valuation benchmarks for small-to-mid-size businesses — sourced from BizBuySell, Acquire.com, PitchBook, and industry surveys. Updated for 2025–2026.
Last updated: July 19, 2026 · 15 sourced data points
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2.58x
Average earnings multiple across all sectors
The average earnings (SDE) multiple across all industry sectors is 2.58x, with most sectors clustering between 2.0x and 3.3x. Multiples increase with business size, recurring revenue, and growth rate.
Source: BizBuySell, Business Valuation Multiples by Industry
APA: BizBuySell. (2026). Business Valuation Multiples by Industry. https://www.bizbuysell.com/learning-center/industry-valuation-multiples/
0.42x – 1.2x
Revenue multiple range across sectors
Revenue multiples for small-to-mid-size businesses range from 0.42x to 1.2x, with SaaS and recurring-revenue businesses at the high end and retail/service businesses at the low end.
Source: BizBuySell, Business Valuation Multiples by Industry
APA: BizBuySell. (2026). Business Valuation Multiples by Industry.
30–60%
Higher multiples for $20M+ EBITDA businesses
Businesses with $20M+ EBITDA command 30–60% higher multiples than those at $3M EBITDA. The size premium reflects lower perceived risk, management depth, and acquirer competition.
Source: QuantPillar, 2025 vs 2026 Valuation Multiples
APA: QuantPillar. (2026). 2025 vs 2026 Valuation Multiples by Sector. https://quantpillar.com/resources/guides/valuation-multiples/
33%
Share of acquisitions that are $1B+
Billion-dollar deals comprised 33% of total acquisition value in 2025, even though they represent a tiny fraction of total deal count. The lower middle market ($5M–$100M) accounts for the majority of deal volume.
Source: QuantPillar, 2025 vs 2026 Valuation Multiples
APA: QuantPillar. (2026). 2025 vs 2026 Valuation Multiples.
6–18 months
Time to sell a small business
The average time to sell a small-to-mid-size business ($500K–$5M) is 6–18 months from listing to close. Preparation (financial cleanup, documentation, buyer list) adds 3–6 months on the front end.
Source: BizBuySell, Business Sale Data
APA: BizBuySell. (2026). Business Sale Data.
90 days
Invisible Exit roadmap: first 90 days
The Invisible Exit framework recommends a 90-day preparation period to (1) separate personal identity from business operations, (2) build transferable systems, and (3) compile the 'exit dossier' acquirers need.
Source: Invisible Exit, The Roadmap
APA: Invisible Exit. (2026). The Invisible Exit Roadmap: What to Do in Your First 90 Days.
~70%
Businesses that never sell
An estimated 70% of small businesses listed for sale never find a buyer. Top reasons: unrealistic valuation expectations, poor financial records, owner-dependence (the business IS the owner), and lack of recurring revenue.
Source: BizBuySell; IBBA Market Pulse Survey
APA: IBBA. (2025). Market Pulse Survey.
2–3x
Multiple premium for recurring revenue
Businesses with 50%+ recurring revenue command 2–3x higher multiples than comparable businesses without recurring revenue. SaaS businesses with >80% gross margins and <5% churn can achieve 4–8x revenue multiples.
Source: Acquire.com, Business Valuation Multiples by Industry
APA: Acquire.com. (2026). Business Valuation Multiples by Industry. https://blog.acquire.com/business-valuation-multiples-by-industry/
20%
Businesses with documented SOPs that sell
Only about 20% of small businesses have documented standard operating procedures (SOPs) at time of listing. Those that do sell 40% faster and at a 15–25% valuation premium.
Source: IBBA Market Pulse Survey
APA: IBBA. (2025). Market Pulse Survey.
55%
Share of buyers who are individuals
Individual buyers (search fund entrepreneurs, independent sponsors, solo acquirers) account for approximately 55% of small business acquisitions under $5M. Private equity accounts for ~25%, strategic acquirers ~20%.
Source: BizBuySell Insight Report
APA: BizBuySell. (2026). Insight Report.
$1.2T
PE dry powder available for acquisitions
Global private equity dry powder reached an estimated $1.2 trillion in early 2026, creating significant competition for quality middle-market acquisition targets.
Source: Bain & Company, M&A Report 2026
APA: Bain & Company. (2026). M&A Report 2026.
4–8x
SaaS revenue multiples for acquisitions
SaaS businesses with strong metrics (>80% gross margin, <5% monthly churn, >100% NRR) can achieve 4–8x revenue multiples in acquisitions. At $1M ARR, this translates to $4M–$8M acquisition price.
Source: Acquire.com; SaaS Capital; PitchBook
APA: PitchBook. (2026). SaaS M&A Report.
63%
SaaS acquisitions by strategic buyers
Strategic buyers (larger SaaS companies adding capabilities) accounted for 63% of SaaS acquisitions in 2025, up from 55% in 2024, as incumbents acquire AI capabilities and new revenue streams.
Source: PitchBook, SaaS M&A Report Q4 2025
APA: PitchBook. (2025). SaaS M&A Report.
50%
Deals that fail during due diligence
Approximately 50% of signed LOIs fail to close after due diligence. Top reasons: financial discrepancies, customer concentration, key-person dependency, and undisclosed liabilities. A clean exit dossier reduces failure risk by 60%.
Source: IBBA; M&A Advisor Survey
APA: M&A Advisor. (2025). Due Diligence Failure Survey.
40%+
Revenue from single customer = deal risk
When a single customer represents more than 20% of revenue, 60%+ of deals fail or require significant price concessions. Revenue concentration above 40% from one customer is considered uninvestable by most PE buyers.
Source: ChurnLens Revenue Concentration Analysis; PE Due Diligence Standards
APA: ChurnLens. (2026). Revenue Concentration Risk Data.
