Private business owners are finding a receptive market for sales, but a new study from BNY Wealth indicates that many are not adequately prepared to maximize their returns. The survey, conducted online by The Harris Poll for BNY Wealth between April 16 and April 30, polled 354 U.S. attorneys, investment bankers, and certified public accountants. Only 48% of respondents said that sellers are somewhat or very well prepared when buyers begin their due diligence review.
The study highlights that owners typically sell for a combination of reasons, with respondents citing an average of about three motivating factors. Family, retirement, or other personal considerations topped the list at 46%, followed closely by strategic partner or exit opportunities and competitive pressure, each at 45%. Additionally, 40% of owners sell at least partly to redeploy capital into other ventures, indicating a trend of serial entrepreneurship. Risk management also plays a role: 31% cited regulatory or industry disruption, while 30% pointed to estate and tax planning, and another 30% mentioned de-risking or diversification.
Deal activity is on the rise, with 66% of advisors rating the market for private business sales as somewhat or very strong. Compared to a year earlier, 58% reported more letters of intent, 57% more closed deals, and 53% more mandates. Among those who view the market as strong, 56% credited sustained private equity interest. The report also references McKinsey's Global Private Markets Report 2026, which found that deal value across buyout and growth deals rose 17% in 2025. Looking ahead, 68% of respondents expect private business deal volume to increase over the next 24 months, including 22% who anticipate growth of more than 20%.
However, not all advisors are optimistic. A third of respondents described current conditions as weaker for dealmaking, with 80% of that group blaming uncertainty in the economy or financial markets. Across the full sample, 58% named interest rates and credit tightening as the biggest threat to M&A activity over the next 12 months, followed by recession risk or earnings downgrades (55%), geopolitical instability (44%), and tax changes that could reduce after-tax proceeds (43%). Financing emerged as the most likely factor to cause a deal to collapse, cited by 35% of respondents.
The study underscores the importance of a cohesive deal team, with 80% of respondents saying it is critical to a successful sale. When asked which professionals clients should engage more before a sale, 52% named tax advisors, 40% legal counsel, 32% estate planning attorneys, and 29% wealth advisors. Alvina Lo, head of advice, planning and fiduciary services at BNY Wealth, noted that value often leaks when advisors work in silos. "When advisors are each executing well within their own lane but not communicating across them, you create gaps," she said.
The findings come as smaller companies report stable conditions despite cost pressures. The U.S. Chamber of Commerce's Small Business Index edged down to 66.5 in the second quarter of 2026 from 67.0 in the first quarter. While 69% of owners said their business is in good health, unchanged from the prior quarter, 66% expect revenue growth over the next year (up from 61%), and 35% plan to add staff (up from 30%). Inflation remained the top challenge, named by 57% of owners. The National Federation of Independent Business reported its Uncertainty Index at 89 points, well above the historical average of 68, with chief economist Bill Dunkelberg noting that "uncertainty remains elevated among small business owners as they face a mixed set of challenges."
For wealth advisors, the survey suggests that early involvement in the exit-planning process is crucial. As one advisor put it, "Getting the wealth advisor involved at the earliest stage to prepare the seller to transition from an owner to an investor of capital is really important." This aligns with broader trends in private market investing and the need for operational coordination as access expands.
