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%).
OK, everyone has heard about a few huge deals for technology companies over the years. But business owners rarely receive a premium for their business. Buyers will look at all the important factors such as cash flow, key employees in place, profit margins and prospects for future growth, to name… Read More »Tip #052 Someone is Going to Throw Money at Your Business? Really?
Looking at data for the whole year, most Main Street transactions occurred in the following industries: Restaurants (18%), personal services (17%), business services (13%), and consumer goods/retail (13%). As outlined in the Q4 2022 Market Pulse report
The number of women CEOs in fortune 500 companies have steadily been increasing, now more than 10%
Yet even though retirement is a foreseeable milestone, most buyers do not engage proactive planning to sell their business, particularly in the Main Street market. Generally, the smaller the business, the less likely the owners are to do any planning prior to going to market. Of the sellers that do… Read More »Advance Exit Planning Prior To Sale
In 2022, retirement led as the number one reason sellers put their company on the market. Yet even though retirement is a foreseeable milestone, most buyers do not engage proactive planning to sell their business, particularly in the Main Street market. Generally, the smaller the business, the less likely the… Read More »1 Reason Seller Went To Market In 2022
The average time to sell a small business stayed relatively consistent in Q4 2022, varying from six to 10 months. Of that time roughly 90 days are spent in due diligence, after a signed letter of intent or offer.
The average time to sell a small business stayed relatively consistent in Q4 2022, varying from six to 10 months. Of that time roughly 90 days are spent in due diligence, after a signed letter of intent or offer.
Deal financing has not changed significantly since before the pandemic. On average, sellers continue to receive 80% or more of total consideration as cash at close. (Cash at close includes senior debt and buyer equity.) Seller financing accounts for 14% or less of most deals. yesterdays chart focused on %… Read More »Seller Financing