If you've spoken to me at any point over the last couple of years, you'll know my answer to "how's the market?" usually came with a sigh and a mention of interest rates. Well, good news: the mood has shifted, and 2026 is the year we're finally feeling it.
Here's the simple version. When borrowing is expensive, buyers can't stretch as far. A private equity house or a trade buyer funding a deal with debt has to service that debt, so higher rates mean lower offers. It's not personal, it's maths. That's why so many owners sat tight through 2023 and 2024 rather than accept a price that didn't reflect what they'd built.
Now rates are easing, with forecasts pointing to further cuts through the year, and buyers' spreadsheets look a lot healthier. Cheaper debt means they can pay more for the same business while still hitting their return targets. We're seeing it in real time: more bidders per process, more competitive tension, and offers creeping back toward numbers that feel fair to sellers.
Are we back to pre-2023 pricing? Honestly, not quite across the board. Good businesses with recurring revenue, strong management and clean numbers are absolutely commanding strong multiples again. Businesses that are more cyclical or owner-dependent are still being priced with a bit of caution. The gap between "great" and "average" businesses has widened, and that's probably here to stay.
My advice? If you've been waiting for the market to come back before selling, it's worth having a conversation now. Preparing a business for sale takes months, and you want to be ready to go while the tailwind is blowing.