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
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. Tomorrows chart will focus on… Read More »Cash at Close
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 4.1x EBITDA, a notable drop over the past few years. Notably, those sellers also received valuations at 104% of benchmark. This shows the sophistication of… Read More »Average Multiples By Deal Size 2019-2022
Despite the solid performance evidenced in the business values above, advisors are reporting a significant drop in seller market sentiment. (A seller’s market occurs when demand exceeds supply. In a seller’s market, buyers compete in order to win deals. This typically translates to increased values and more favorable deal terms… Read More »Seller’s Market Sentiment Q4 2013-2022