Lets look at how a million dollars is becoming a dividing line in the business sale market.
That does not mean every company needs a seven figure valuation. It simply means you should recognize which buyers are likely to pursue your business and what factors could stop a deal from closing.
BizBuySell’s latest Insight Report notes that businesses selling for over $1 million accounted for 22% of reported transactions in the third quarter of 2026, which is the highest share on record (more than doubled since 2017). Activity above that mark grew 8% year over year, while sales below it dropped 10%. Sale to asking price ratios also showed a clear gap, averaging 100.8% above $1 million compared to 93.6% below it.
According to BizBuySell (Insight Report)… “Financing likely contributed to the divide. Smaller transactions remain heavily dependent on SBA funding, which brokers named the most common financing obstacle of the quarter, cited by 38%, ahead of interest rates at 34%. Larger businesses draw buyers less dependent on SBA. In fact, brokers reported seeing more search fund operators (32%), private equity firms (31%) and family offices (20%) than a year ago.”
Keep in mind that these are national benchmarks from closed transactions, not a rigid pricing formula. They also reflect final sale figures, not initial list prices… and pricing an asset higher will not automatically move it into a stronger buyer pool.
So if you are planning an exit, the better question to ask is what will your target buyer need to get the deal across the finish line? The key takeaway being: prepare for the specific market your business lives in. Setting a grounded valuation backed by solid documentation will serve you far better than chasing a number.
