Serving Business Owners During a Shift in Our Market

In Gary Keller’s book Shift, he makes a simple but powerful point:

Markets change. And when they do, the rules change with them.

What worked in an up market does not work in a shifting market.

And those who recognize the shift early—and adjust—are the ones who win.

We are in one of those moments right now.

This is not just a slower market.

This is a different market.

And it requires a different mindset.

What’s Changing Right Now

We are seeing multiple forces hit small and lower middle market businesses at the same time.

Costs are rising across the board. Labor is more expensive. Insurance, rent, and compliance continue to increase. Tariffs are still in place, which is pushing up the cost of goods for many businesses.

Fuel and transportation costs are becoming more volatile again. This impacts distribution, logistics, and any service business that depends on movement.

At the same time, interest rates remain elevated. SBA lending is still available, but buyers are more cautious and underwriting is tighter.

The result is clear:

Many businesses are experiencing margin pressure, even if revenue looks steady.

And when margins tighten, valuations follow.

A New Factor: AI Is Now Part of Every Conversation

Artificial intelligence is no longer a future concept. It is here, and it is influencing how buyers think.

This is especially true for businesses that rely on knowledge, processes, or repeatable services.

Buyers are starting to ask:

• Can parts of this business be automated?

• Will this require fewer employees in the future?

• Are these earnings sustainable?

For some businesses, this creates concern.

But there is another side to this.

AI can also improve businesses. It can reduce labor, increase efficiency, and improve consistency.

So the real issue is not whether AI exists.

The issue is whether the business has adapted to it.

The Adaptation Gap

We are now seeing a widening gap in the marketplace.

Not just between good and bad businesses.

But between adapted and non-adapted businesses.

The businesses that are adapting tend to have:

• Clean financials

• Systems and processes in place

• Less dependence on the owner

• Awareness of cost pressures and AI

• The ability to maintain or improve margins

These businesses continue to attract buyers. They still get financing. They still command strong value.

On the other side are businesses that have not adapted.

They are dealing with rising costs, limited systems, and no clear response to changes in the market.

These businesses will still sell. But the process is harder.

Deals take longer. Structures become more complex. And expectations must adjust.

Buyers Are Thinking Differently

Today’s buyer is more disciplined than just a few years ago.

They are not just buying cash flow.

They are buying future resilience.

They want to know:

• Will this business hold up under pressure?

• Can it improve after acquisition?

• Is it exposed to AI, tariffs, or cost increases?

Because of this, deal structures are changing.

We are seeing more:

• Seller financing

• Earnouts

• Performance-based structures

Deals are still happening. But they require more thought and more creativity.

What This Means for Us

This is where the opportunity is.

In a shifting market, people need guidance.

They need clarity. They need structure. They need someone who understands what is really happening.

That is our role.

We are not just here to sell businesses.

We are here to help owners understand how their business fits into this changing environment—and how to prepare for it.

Where We Need to Focus

Lead with Insight

Business owners are hearing a lot of noise right now.

AI. Costs. Interest rates. Tariffs.

We need to simplify it for them. Help them understand what matters and what to do next.

Prepare Businesses Earlier

Most businesses are not ready to sell.

That gap is becoming more obvious in this market.

We need to work with owners earlier. Help them improve financials, reduce dependence on themselves, and build stronger systems.

Bring AI Into the Conversation

AI should not be ignored or feared.

It should be discussed openly.

Where is the business exposed?

Where can it improve?

These are now part of every valuation and advisory conversation.

Structure Better Deals

Deals are becoming more complex.

That is not a problem. It is an advantage for those who know how to structure them.

We need to be strong in creative deal design.

Improve Buyer Quality

More buyers are entering the market.

But many are not prepared.

We need to educate them, guide them, and help them become stronger buyers.

Better buyers lead to more successful closings.

Strengthen Our Network

In a shifting market, relationships matter even more.

Lenders, CPAs, attorneys, and advisors all play a critical role in getting deals done.

We need to stay connected and aligned.

The Opportunity in the Shift

This type of market can feel uncertain.

But it creates opportunity.

Because when things get harder, people look for help.

They look for someone who understands the shift.

They look for someone who can guide them through it.

Final Thought

As Gary Keller emphasizes in Shift:

Those who adjust early gain the advantage.

This is our moment to adjust.

To lead.

To educate.

To prepare.

To guide.

Because we are not just in the business of selling companies.

We are in the business of helping owners navigate change.

And that has never been more valuable than it is right now.