Selling a Business in 2025? What Every Founder Must Know to Maximize Their Exit

Written By Frank Romano

What Founders Should Know About Today’s Market

What’s Really Happening in the Market — And What It Means for Founders

Are buyers still active in 2025? The short answer: yes. But they’re more selective than ever. For founder-led companies in the $2M–$25M EBITDA range, the difference between a quiet close and a career-defining exit often comes down to how and when you prepare.

Spreadsheets and diligence get attention. But something else is just as important: the emotional side of selling.

At Axio Bridge, we’ve seen what really happens behind the curtain:

  • The anxiety of giving up control after 20+ years of leadership

  • The fear of what comes next when your identity is tied to your business

  • The frustration of buyer offers that feel transactional or dismiss your legacy

These feelings are valid. And they’re one reason why trying to run a sale process alone can be risky, not just financially, but personally.

The State of the Lower Middle Market (LMM) — Mid-Year 2025

The Lower Middle Market (LMM) businesses with $5M–$100M in annual revenue and $2M–$25M in EBITDA remains resilient despite ongoing economic headwinds. While interest rates and geopolitical volatility have cooled certain segments, high-quality companies with recurring revenue, strong margins, and professional infrastructure are still commanding buyer interest.

At Axio Bridge, we operate at the intersection of clarity and execution, guiding founders through the most important transaction of their lives. This update is your window into market conditions, buyer sentiment, and the value of process-driven exits.

Macroeconomic Landscape: Headwinds & Tailwinds

Interest Rates
The Federal Reserve maintained the federal funds rate at a target range of 5.25%–5.50% as of May 2025 (source). While this slowed highly leveraged deals at the top of the market, private acquirers and middle-market-focused PE firms remain active, especially with companies presenting low integration risk and strong cash flow.

Inflation & Consumer Sentiment
Core inflation eased to 2.8% year-over-year in April 2025 (source). This decline has improved lender confidence and stabilized deal terms, helping sellers tell a cleaner EBITDA story as labor and material costs normalize.

Private Equity Dry Powder
As of early 2024, PE firms were sitting on roughly $418 billion in undeployed capital (source). That number has only grown. PE buyers are hungry for quality assets but increasingly prioritize clarity and readiness in a process.

Buyer Selectivity
The bar is higher in 2025. Companies with disorganized books, overreliance on a single customer, or unclear leadership transitions are getting passed over. But well-run, professionalized companies are still closing premium deals, especially when outreach is strategic and competitive tension is engineered.

Sector Spotlight: May 2025 Trends

✈️ Aerospace & Aviation Services
M&A activity is robust. Fixed Base Operators (FBOs), Maintenance, Repair and Overhaul (MRO) shops, and charter services with contractual revenue and ESG-compliant operations are being prioritized. Strategic and PE buyers are focused on SAF (Sustainable Aviation Fuel) readiness and clean compliance.

🏢 Manufacturing & Precision Fabrication
Buyers are targeting U.S.-based manufacturers in aerospace tooling, defense components, and precision medical devices. ISO-certified shops with ERP systems and long-term contracts are winning attention. Nearshoring remains a key demand driver.

🖥️ Vertical SaaS, ComplianceTech & Industrial AI
Niche software companies delivering automation, compliance, or AI integrations into legacy systems are highly sought after. Recurring revenue over 80% and net retention above 90% are table stakes. Growth equity and strategic acquirers are active.

🚛 Distribution, Supply Chain & Logistics
Tech-enabled logistics, warehouse automation, and route-optimized distribution are drawing strong multiples. Buyers prefer scalable, asset-light models with regional expansion and deep contractual relationships.

🌱 Environmental, Waste & Field Services
Regulated service providers in remediation, waste hauling, and municipal contracts are in demand. Route density, sustainability compliance, and cash flow consistency drive premiums. ESG-minded acquirers are underwriting long-term regulatory alignment.

Why Selling Without an M&A Advisor Is a Costly Mistake for Founders

Many founders believe a sale can be completed with a few phone calls and a lawyer. The reality is far more complex.

DIY sale attempts often:

  • Erode leverage before buyers are even engaged

  • Eliminate buyer competition and urgency

  • Risk internal panic from employees or customers

  • Drain focus and energy from daily operations

The Axio Bridge Advantage

At Axio Bridge, we don’t just run a process. We protect your legacy and maximize your outcome.

Market Positioning
We shape your story into a buyer-ready narrative, showcasing your moat, normalizing financials, and anticipating diligence hurdles.

Buyer Strategy & Outreach
We don’t mass-blast lists. We build custom profiles, reach out discreetly, and protect your identity until interest is confirmed.

Process Rigor
We run a battle-tested system: Exit Readiness Kit, Confidential Information Memorandum (CIM), IOI/LOI guidance, and diligence orchestration.

Confidentiality & Control
You stay in charge. We control the flow of sensitive information and ensure only pre-qualified buyers engage.

Value Maximization
Clean deal terms. Limited post-close exposure. Faster close timelines. We engineer outcomes that protect your upside.

Final Thoughts

In 2025, there are two types of sellers: those who hope, and those who prepare.

At Axio Bridge, we help business owners prepare, position, and protect their legacy.

If you’re considering a sale in the next 12–36 months, now is the time to explore your options. What is your business worth? How can you improve its marketability? What story will buyers see?

Schedule a confidential call with Axio Bridge to find out.

Note: This content is for informational purposes only. Please consult your legal, tax, or financial advisor for guidance specific to your circumstances. Axio Bridge is not a licensed investment advisor and does not sell securities.

Frank Romano