Top 3 Industries Purchased In 2023 Q1 Main Street Market Sectors By Purchase Price
In the Main Street market, business services and consumer goods trended throughout the sector.
Delta Business Acumen
Seller Financing Ticking Up In Lower Middle
Year-over-year trends show a decrease in seller financing in the Main Street market. Meanwhile, deals in the lower middle market leaned a bit heavier toward seller financing and other alternative financing arrangements.
Average Number Months To Close From Offer (LOI/Purchase Agreement)
Deals took slightly longer to close in the Main Street market, but closed faster in the lower middle market. The shift came entirely in the listing/marketing stage, as time from LOI to close did not change. This suggests Main Street businesses had a harder time finding a buyer, while lower… Read More »Average Number Months To Close From Offer (LOI/Purchase Agreement)
Average# Months To Close From Engagement
Deals took slightly longer to close in the Main Street market, but closed faster in the lower middle market. The shift came entirely in the listing/marketing stage, as time from LOI to close did not change. This suggests Main Street businesses had a harder time finding a buyer, while lower… Read More »Average# Months To Close From Engagement
Seller’s Market Sentiment, 10-year Comparison, Q1 2013 to Q1 2023
A seller’s market occurs when demand exceeds supply. There are more interested, active buyers than there are quality deals on the market. In a seller’s market, buyer’s compete in order to win deals. This typically translates to increased values and more favorable deal terms for the seller.Q1 2023 shows a… Read More »Seller’s Market Sentiment, 10-year Comparison, Q1 2013 to Q1 2023
Seller Market Sentiment, Q1 2014-2022
A seller’s market occurs when demand exceeds supply. There are more interested, active buyers than there are quality deals on the market. In a seller’s market, buyer’s compete in order to win deals. This typically translates to increased values and more favorable deal terms for the seller. Q1 2023 shows… Read More »Seller Market Sentiment, Q1 2014-2022
Average Selling Price as % of Asking/Benchmark Price
Historically, business valuations hold steady in the Main Street market, with multiples from 2.0-2.8x SDE. Shifts are more likely in the lower middle market as businesses become more attractive targets to financial and strategic buyers alike.
Median Multiples Q1 2019 – Q1 2023
Historically, business valuations hold steady in the Main Street market, with multiples from 2.0-2.8x SDE. Shifts are more likely in the lower middle market as businesses become more attractive targets to financial and strategic buyers alike.
Impact of Broker Simplification Act on Brokers’ Businesses
Effective March 29, 2023, certain M&A brokers are no longer required to register as broker-dealers with the US Securities and Exchange Commission (SEC). The new exception to the Securities Exchange Act will allow an M&A broker to engage in a securities transaction connected to the sale and purchase of an… Read More »Impact of Broker Simplification Act on Brokers’ Businesses
One Small Step for Women and Giant step for Mankind
As stated by Statista: Today marks 60 years since the first woman launched into space. On June 16, 1963, the 26-year-old Russian cosmonaut Valentina Tereshkova set off on the Soviet Union’s Vostok 6 expedition. Some 20 years later, the U.S. followed suit with Sally Ride launching off on June 18. The… Read More »One Small Step for Women and Giant step for Mankind