Average# Months To Close From Engaging Broker/Advisor
The average time to sell a small business shrunk, varying from 6.5 to 8. Of that time, roughly 60 to 120 days are spent in due diligence and execution, after a signed letter of intent or offer.
General
Average Final Price vs. Asking/Benchmark Price, Q2 2019-2022
Looks like asking vs Benchmark went up for all categories besides 1MM – 2MM. <$1M in Purchase Price typically goes to market with an asking price whereas those in the $5M-$50M typically go to market without an Asking Price, however, with an expectation of what buyers will most likely pay.… Read More »Average Final Price vs. Asking/Benchmark Price, Q2 2019-2022
Median Multiples Of Sold Companies Q2 2014-2022
Shifts are more likely in the lower middle market, as businesses become more attractive targets to financial and strategic buyers alike. Q2 results in the LMM are off-trend, suggesting a weakening in seller performance and/or buyer confidence. Nevertheless, valuations are still strong as lower middle market sellers are receiving 100-106%… Read More »Median Multiples Of Sold Companies Q2 2014-2022
Expectations For Business Valuations, 5-Point Scale
On average, business valuations held steady in the Main Street market. Last year, Q2 2021, appears as something of an outlier in multiple trends. Responses in Q2 2022 suggest Main Street multiples have returned to normal.
Free Market At Work For Housing
With Rents continuing to rise has now pushed developers to build more housing units. Some 420,000 new apartments are expected to be completed in cities across the U.S. this year, marking a historic 50-year high in multifamily construction, according to data from the listing service RentCafe, Axios’ Jacob Knutson reports.… Read More »Free Market At Work For Housing
Seller’s Market Sentiment, Q2 2021 vs Q2 2022
A seller’s market is when sellers feel they have an advantage or it’s a good time to sell, for instance when demand exceeds supply and 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.… Read More »Seller’s Market Sentiment, Q2 2021 vs Q2 2022
Tip #045 – How did you come up with that number?
Many business owners try to determine the price of their business based on how hard they have worked over the years. But the market will tell them that the value is really what it is worth to a new owner in the future. As a result, there are many factors… Read More »Tip #045 – How did you come up with that number?
Seller market sentiment Q2 2012-2022
A seller’s market is when sellers feel they have an advantage or it’s a good time to sell, for instance when demand exceeds supply and 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.… Read More »Seller market sentiment Q2 2012-2022
Change In New Client Engagements Last Quarter, 5-Point Scale
Despite concerns over market headwinds, most advisors are seeing a strong influx of new engagements. Roughly two-thirds (67%) say they’re seeing more Baby Boomer business owners trying to exit before the next downturn or macro event. Advisors are also reporting a strong uptick in the number of new clients coming… Read More »Change In New Client Engagements Last Quarter, 5-Point Scale
Socio-Economic Factors Affecting Market Conditions
Labor Shortages Impacting M&A Advisors say that labor shortages have had the biggest impact on deal-making in Q1 2022. In the Main Street market, 92% say its had a negative effect (54% “very negative”). Likewise, 92% say labor shortages are having a negative effect in the lower middle market (47%… Read More »Socio-Economic Factors Affecting Market Conditions