Nearly 67% of surveyed advisors noted no significant valuation impact from AI, suggesting the market is watching the technology rather than pricing it in. Only 12% of respondents observed a valuation upside, while a mere 3% identified a downside. This detachment indicates that while buyers recognize the potential for automation to disrupt operations, they are not yet applying consistent premiums or discounts to their offers.
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Business Acquisitions Show Resilience as AI Impact Remains Muted
While artificial intelligence dominates corporate discourse, it has yet to reshape the price tags of businesses worth up to $50 million. According to the Q1 2026 Market Pulse Survey from the IBBA and M&A Source, the vast majority of advisors report that AI is not currently driving material changes in company valuations.
Despite the uncertainty surrounding new tech, deal activity remains robust. In the sector for transactions exceeding $5 million, 83% of deals attracted at least three offers, with 18% drawing ten or more bids. This high level of competition is supported by a steady demand for tangible, human-centered sectors such as personal services, construction, and manufacturing. Seller confidence has also seen an uptick, particularly in the Lower Middle Market, where valuation multiples remain consistent with previous periods. With 43% of advisors reporting stronger activity over the past year compared to just 21% citing a slowdown, the market continues to favor deals with durable, projectable performance.
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