Since January, the Inland Northwest has seen several business acquisitions, suggesting that merger and acquisition activity may be on the rise.

A few notable transactions reported by the Journal this year include acquisitions of Spokane-based trade companies, fintech startups, and a software company, including M&L Supply Co., fintech startup SecureSave, and Maplewood Software Inc. and its spin-off StaffReady. In April, Post Falls-based firearm holster manufacturer Alien Gear Holsters, a trade name and brand of Tedder Industries LLC, was purchased by a Delaware company following a court-approved bankruptcy auction.

Despite the recent transaction activity, Spokane-area lawyers, bankers, and brokers say the reality is more nuanced. Rather than a surge of companies acquiring or merging with other companies, professionals say the region is more broadly experiencing a steady flow of business transitions.

Much of the region's recent transaction activity is tied to baby boomer retirements, succession planning, and buyers looking for established companies with stable cash flow. One commercial lender notes a significant increase in acquisition financing, but other attorneys and brokers say the overall pace remains consistent with what they’ve seen in recent years, rather than a true surge in mergers and acquisitions.

Schuyler Shannon, assistant vice president and SBA banker at Spokane-based RiverBank, says the bank is on pace for its largest year of acquisition financing to date, with activity about 50% ahead of last year through the Small Business Administration 7(a) program. Shannon attributes the increase to retiring business owners seeking successors and buyers looking to acquire established companies, particularly in the trades sector. 

“I’m seeing a lot in the trades, specifically here in Spokane,” Shannon says. “Either baby boomers retiring and looking for a home for their business. I’m also seeing an influx of folks moving to Spokane from out of state and acquiring businesses here in town.”

So far this year, RiverBank has facilitated acquisitions in  Washington, Idaho, and Oregon, he says. The Spokane market's trajectory is strong, due to a steady pipeline of family legacy businesses preparing for ownership transitions.

The SBA 7(a) program is the primary vehicle through which RiverBank is facilitating commercial loans, he says. The program makes business acquisitions more accessible through a structure that allows buyers to purchase a business with a smaller down payment than conventional loans. Additionally, if there is real estate involved in the transactions, the SBA program allows the lender to facilitate the entire loan over a 25-year period of maturity and amortization rather than a 10-year conventional loan, giving borrowers a break on cash flow, he says. 

On average, the loan amount to finance acquisitions, not counting other sources of funding, is about $1.25 million, he says.

Even so, some attorneys who handle business transactions say the increase isn’t necessarily indicative of a trend showing a surge in mergers and acquisitions.

Erik Kukuk, a principal at Spokane-based Paine Hamblen PS who advises closely held companies on succession planning and transactions, says more deals have crossed his desk over the last three quarters, but not enough to characterize the market as experiencing a dramatic shift, he says.

“I don’t know if there has been an uptick in true M&A work,” Kukuk says. “There certainly has been an uptick in deal flow, but not necessarily an outlier, per se.”

Brian Southworth, a business broker with Murphy Business Sales Spokane Office, agrees, adding that most of the activity he sees involves smaller businesses rather than large corporate acquisitions. While definitions vary across the business acquisition industry, Southworth distinguishes between large-scale M&A transactions and what he calls “Main Street” business sales, which are often owner-operated companies that are being transferred to a new owner, he says.

In 2025, Southworth had his best year selling "Main Street" businesses and anticipates another robust year of sales this year, he says.

Southworth says service-based businesses are driving sales, particularly trades such as HVAC, plumbing, and electrical companies that generate steady cash flow.

It's likely the market will see more service-based industries coming up for sale in Spokane going forward.

“The best time to start planning your exit strategy is the day you start or buy your business,” he says. “The next best time is three years in advance.”