Multiples remained relatively consistent across market sectors, with one notable exception. Advisors reported that businesses with enterprise value of $5M-$50M received an average valuation of 5.3x EBITDA, a meaningful jump over last year, but still down from the red hot market in Q4 2021.
On average, sellers are receiving valuations at 86% of benchmark or better. As is the trend, businesses in the lower middle market performed the best, receiving nearly all or above the private benchmark they set with their advisors before going to market.
“It’s difficult to say how election cycles impact M&A, as political policies don’t operate in a vacuum,” said Scott Bushkie, President of Cornerstone Business Services. “However, business owners generally expect a Democrat-led government will raise taxes. If the winds appear to be blowing that way, we could see more sellers… Read More »What will increase M&A Activity in 2024?
The lending environment is critical. If these dynamics shift, we hope to see lenders get a bit more flexible and increase their appetite for risk.
One of the big questions that is quickly asked by a buyer are the lease terms of the space that the business occupies. Buyers will look at the lease based on their future plans for the business. Can the lease be transferred to a new owner or could a new… Read More »Tip #066 Hmm, not really sure why we do it that way…
Kim had a great time at the emPowered HR Dispute Resolution’s Food, Fun and Formula 1 Event. Special thanks to Deanna F. Longtin and Christopher Holmes for the invitation. He had alot of fun in the Formula 1 car, however since he didn’t get polo position I need more practice,… Read More »emPowered HR Dispute Resolution’s Food, Fun and Formula 1 Event
What a great and informative morning at WATT! Kicking things off, Roya Athanasopoulos dazzled us with her fabulous jewelry transformations—turning those forgotten treasures in your drawer into stunning, wearable art! Then, Dyan stepped up with some thrilling news: she’s your go-to for setting up dreamy cruises and land adventures, and… Read More »What a great and informative morning at WATT!
While we didn’t see a big shift in Main Street valuations, market confidence remained low in this sector. Sellers received less cash at close, meaning they had to rely on additional seller financing or alternative deal structures.And while sellers in the lower middle market benefited from a relative rebound in… Read More »Lending Conditions: How Has Senor Lending Changed
One of the big questions that is quickly asked by a buyer are the lease terms of the space that the business occupies. Buyers will look at the lease based on their future plans for the business. Can the lease be transferred to a new owner or could a new… Read More »Tip #065 Will the building lease help or hurt the sale of the business?
Had a fantastic morning at WATT! Shannon showcased some stylish new pickleball attire and elegant white blouses available at Kiss Me Kate on Camelback. #Retail #WATT #DeltaBusinessAdvisors