Q1 2025 Market Pulse Report: What Florida Business Owners and Buyers Need to Know Now
- Michael Finley, MBA
- May 19
- 3 min read
By Michael Finley, MBA – Business Broker at Infinity Business Brokers
As we move deeper into Q2, the newly released Q1 2025 Market Pulse Report provides timely insights for Florida business owners and buyers. Compiled from data collected in April, this quarterly update from the IBBA and M&A Source helps us understand the most recent trends in the Main Street and lower middle market business sales space.
Whether you're planning to sell your business this year or scouting for the right acquisition in Southwest Florida, this report sheds light on key factors shaping the M&A landscape in early 2025. Here's what you need to know.
🚀 Entrepreneurial Roots & First-Time Sellers Dominate the Market
According to the report, 60% of sellers in Q1 2025 were original business founders who built their operations from scratch. Even more striking: 90% of sellers were going through the business sale process for the first time.
Unfortunately, most of them weren’t prepared. Over 80% had no written exit plan when they first contacted an advisor. If you’re in that boat, let this be a wake-up call. A successful exit takes strategy. At Infinity Business Brokers, we help you build that roadmap early so you're not leaving money on the table.
Path to Ownership - Q1 2025:
Acquisition Method | Percentage |
Started the Business | 60% |
Purchased from 3rd Party | 23% |
Inherited | 8% |
Purchased from Family | 5% |
Purchased from Employer | 4% |
💼 Private Equity Stays Active, Especially in Larger Deals
Private equity and search funds remain players in the market. In fact, 19% of advisors reported closing PE or search fund deals over the past year, with most PE activity focused on businesses valued at $5M to $50M.
If your Florida-based company is in that range, now may be a great time to explore institutional buyers.
PE/Search Fund Deals by Enterprise Value:
Enterprise Value | PE Participation |
$5M–$50M | 31% |
$2M–$5M | 16% |
<$2M | Minimal |
🏦 SBA Loans Remain Vital but Challenges Loom
The SBA 7(a) loan program continues to be a major driver of Main Street business deals, with 90% of advisors affirming its critical role. However, ongoing federal reorganization and policy shifts could impact its availability.
If you're selling a business under $2M in Florida, expect most of your buyers to rely on SBA financing. Make sure your financials are clean, current, and well-documented. We can help with that.
💲 Valuations Hold Strong but Lower Middle Market Softens
While Main Street businesses under $2M saw steady valuation multiples, there was a slight decline in the lower middle market. Sellers across all categories averaged between 84% and 102% of their benchmark valuations.
Average Selling Price to Asking/Benchmark Ratio:
Business Value Range | Q1 2025 Avg % of Benchmark |
<$500K | 86% |
$500K–$1M | 95% |
$1M–$2M | 94% |
$2M–$5M | 97% |
$5M–$50M | 102% |
📊 Median Valuation Multiples by Deal Size
Valuation multiples remain one of the most important metrics for business owners evaluating their exit potential. In Q1 2025, median multiples held steady across the board, with slight upticks in some lower middle market segments. These multiples are based on Seller’s Discretionary Earnings (SDE) for businesses under $2M, and EBITDA for deals above that threshold.
Q1 2025 Median Valuation Multiples by Business Value Range:
Deal Size | Median Multiple (SDE/EBITDA) |
<$500K | 2.0 |
$500K–$1M | 2.8 |
$1M–$2M | 3.0 |
$2M–$5M | 3.5 |
$5M–$50M | 4.5 |
📈 Offers Are Up for Quality Deals
One clear positive trend is buyer competition is heating up for well-positioned businesses. Over 80% of $5M+ deals drew at least three offers, and 16% attracted 10 or more bids.
This is great news for Florida business sellers who are prepared, particularly those with clean books, repeatable systems, and low owner involvement.
Average Offers Per Deal – Q1 2025:
Business Value Range | Avg Offers |
<$500K | 1.89 |
$500K–$1M | 2.69 |
$1M–$2M | 2.8 |
$2M–$5M | 3.41 |
$5M–$50M | 4.68 |
💵 Seller Financing & Cash at Close Stay Consistent
Seller financing accounted for about 15% of most deals, except on the low and high ends. For businesses under $500K or over $5M, it hovered closer to 9% and 5% respectively.
Financing Snapshot – Q1 2025:
Business Value Range | Cash at Close | Seller Financing |
<$500K | 88% | 9% |
$500K–$1M | 82% | 13% |
$1M–$2M | 80% | 17% |
$2M–$5M | 80% | 16% |
$5M–$50M | 84% | 5% |
⏳ Time to Close Edges Higher, Especially for Larger Deals
Main Street businesses still typically close within 6 to 10 months. But the time to close is
increasing in the lower middle market, with due diligence for $5M to $50M deals now averaging a record 5.5 months.
If you're selling a business of size, get everything buttoned up early. Due diligence delays are avoidable with proper preparation.
Ready to Make Your Move?
Whether you're a Southwest Florida business owner looking to sell or a buyer eager to find the right opportunity, the team at Infinity Business Brokers is here to guide you. Let’s connect for a no-pressure consultation to explore your goals.
📞 Call Michael Finley, MBA at (239) 599-5001
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