Small business buyers, sellers, and intermediaries reported a marked deterioration in market confidence during the fourth quarter of 2026, reversing the glimmers of optimism seen in Q3, according to the latest Member Confidence Survey released by DealStream. Respondents have turned substantially more pessimistic regarding the economy, business valuations, financing availability, and interest rates. Economic pessimism increased sharply, with those rating the economy as “bad” rising from 28.8% in Q3 to 41.9% in Q4.

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“What stands out in this quarter’s survey is the contrast between growing economic concerns and continued expectations for deal activity,” said Robert Brauns, founder and CEO of DealStream. “Buyers, sellers, and intermediaries are anticipating higher interest rates and tighter financing conditions, yet many still expect more businesses to change hands. That suggests there is still an appetite for transactions, but getting deals across the finish line may require more realistic pricing, creative financing, and greater flexibility from both sides.”

The Q4 survey of approximately 355 active market participants highlights increased uncertainty but continued resilience in the small business transaction environment. About 43% of respondents still expect the number of businesses sold to increase over the next six months. Buyers continue to negotiate from a position of strength, with 38.9% of respondents indicating the current market is more favorable for those looking to buy businesses.

Valuation leverage is shifting toward buyers, with nearly half of Q4 respondents (46.7%) expecting selling prices to fall, a sharp increase from one-third in Q3. Acquisition financing has become the dominant concern. Approximately two-thirds of respondents (66.1%) expect financing to become harder to obtain, a massive leap from 44.6% in the previous quarter. Simultaneously, interest-rate expectations shifted dramatically, with 68.1% of respondents predicting rates will rise over the next six months.

Despite the broader pessimism, expected transaction activity remains robust in key industries. Business Services held its position as the most active sector, capturing 38.5% of respondent expectations, followed closely by Energy & Utilities at 37.0% and IT & Software at 33.6%. Notably, Entertainment & Media saw the largest sector gain, increasing 5 percentage points to 12.7%.

About DealStream

DealStream (formerly MergerNetwork) is a global online marketplace for buying and selling businesses, real estate, capital, and professional services. With hundreds of thousands of members worldwide, DealStream connects entrepreneurs, investors, and advisors to opportunities across industries and markets. DealStream has been recognized as an Inc. Power Partner for three consecutive years, most recently in 2026, for its commitment to helping businesses succeed.

For more information, read DealStream’s Q4 2026 Market Survey Report.

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