The 2026 Deal Surge: What Business Owners Need to Know About M&A, Funding & Credit Right Now

The M&A Market Is Firing on All Cylinders

If you've been on the fence about whether now is the right time to buy or sell a business, the answer from the market is clear: deals are getting done at a record pace. From mega-mergers reshaping entire industries to quiet acquisitions of service businesses right here in Texas, 2026 is shaping up to be one of the most active dealmaking years in recent memory.

At the top of the market, Paramount agreed to acquire Warner Bros. Discovery in a landmark $111 billion transaction that will fundamentally reshape American media. A consortium led by Global Infrastructure Partners and EQT moved to acquire The AES Corporation for $33.4 billion a signal that infrastructure and energy assets remain red-hot targets. And Virgin Music Group finalized its $775 million acquisition of Downtown Music, underscoring that IP-rich, recurring-revenue businesses command serious multiples.

When capital is flowing at the top, it trickles down. Private equity firms flush with dry powder need to deploy capital and roll-up strategies targeting service-based businesses are increasingly common. That means more qualified buyers, stronger valuations, and better deal terms for sellers in the lower-middle market.

The SBA Lending Landscape Has Shifted Know the Rules

SBA financing is the lifeblood of small business acquisitions and the rules changed in ways that matter. The SBA reduced the maximum 7(a) Small Loan size from $500,000 down to $350,000. If your deal needs financing in that range, you're now in the full standard 7(a) underwriting process, which takes longer and requires more documentation. The minimum SBSS credit score also increased from 155 to 165, and most lenders want to see a personal FICO of 720 or above for the best rates and terms.

One critical change many owners are missing: if your business carries Merchant Cash Advance (MCA) debt, it can no longer be refinanced via an SBA loan and it may disqualify you from approval altogether. If you're planning to sell or seek acquisition financing, cleaning up MCA balances now is non-negotiable.

Credit Is the Engine Here's How to Protect Yours

Whether you're trying to buy a business, grow the one you have, or survive a slow quarter, your credit profile is the gatekeeper to every financial option available to you. Most business owners manage it reactively instead of strategically.

There are three separate credit universes at play: your personal FICO score, your business credit profile (tracked separately by Dun & Bradstreet, Experian Business, and Equifax Business), and your blended FICO SBSS score for SBA purposes. A 100-point difference in your FICO can mean the difference between a 7% and a 12% interest rate on a $50,000 loan over five years, that's $7,000 you could have reinvested in your business.

Your business credit profile is also publicly accessible. Lenders, vendors, partners, and even competitors can pull it without your permission. That means your business credit score is part of your reputation, not just your balance sheet.

What This Means for Houston Business Owners

The macro forces shaping 2026 lower borrowing costs, AI-driven infrastructure demand, and private equity pressure to deploy capital all create upward pressure on valuations for service businesses with strong cash flow and clean financials. If you own a business with steady earnings and have been considering an exit in the next two to five years, the market is beginning to tilt in your favor.

On the buy side, SBA 7(a) loans tied to the Prime rate are more affordable than they were 24 months ago. Well-prepared buyers with strong credit and pre-qualification letters in hand can move faster and win deals.

At PAC Consulting, we've facilitated over $500 million in transactions with a network of 200+ lenders built specifically for service-based businesses in the $500K–$2M range. If you're ready to explore your options whether buying, selling, or simply understanding what your business is worth reach out for a no-pressure conversation with an advisor who does this every day.