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
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
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
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.
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.
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
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
Seller expectations: “Too many business owners believe their company is worth more than the market iswilling to pay. This is a dangerous disconnect that can put a business owner’s financial future at risk,” saidRyan Hemmert, Founder of Washington Business Brokers. “It’s important to get an estimate of value, orsome kind… Read More »Top Challenges By Deal Size
Individual buyers dominated the Main Street market in 2022. Calculating survey responses for all four quarters, we see that first time buyers made 39% of Main Street acquisitions followed by serial entrepreneurs (buyers who’d owned a business before) at 36%. This is relatively on trend.
Looking at data for the whole year, in the lower middle market, most transactions occurred in these industries: Construction/engineering (21%), manufacturing (16%), personal services (10%), and consumer goods (10%).