Multiples are slightly off-peak, and yet businesses in the lower middle market continue to draw values at or even above internal benchmarks. “Volume was down in 2020 just as with other times of business downturns. But unlike during times of recessions, multiples actually stayed strong, at least for businesses that… Read More »Median Multiple Off Peak
In Q4, median final selling prices came in anywhere from 84% to 102% of the pre-set asking price or internal benchmark. Lower middle market companies in the $2 million to $5 million and the $5 million to $50 million range achieved the highest values at greater than 100% of benchmark.… Read More »Median Price Realized vs. Asking Price, Q4 2018-2019-2020
One year ago, buyers were looking for talent. Every company we talked to was up against the same problem – there was so much opportunity to be had, but none of the employees to make it happen. So much has changed in a year. Business buyers today are coming to… Read More »M&A Buyers May Need to Move Quickly in 2021
Source: Axios #DeltaBusinessAdvisors #MergersandAcquisitions #BusinessBrokers #MandAMarket #DailyBusinessAcumen #BaseBall
In the lower middle market, 33% of buyers were existing companies, a drop from 40% in 2019. This year, first time buyers accounted for 22% of lower middle market activity and serial entrepreneurs accounted for 18%. Private equity firms remain active, representing 22% of lower middle market buyers in 2020—a… Read More »2020 Lower Middle Market Buyers
“There is no royal flower-strewn path to success. And if there is, I have not found it, for if I have accomplished anything in life it is because I have been willing to work hard.” – Madam C.J. Walker, America’s first female entrepreneur millionaire Madam C.J. Walker was an American entrepreneur,… Read More »Monday Mojo Madam C.J. Walker
First time buyers dominated the Main Street market, followed by serial entrepreneurs and existing companies. In the Main Street market, individuals made up 73% of business buyers (44% first time buyers, 29% serial entrepreneurs). Source: IBBA & M&A Source Market Pulse 2020 Q4 (published 2/9/2021) #DeltaBusinessAdvisors #MergersandAcquisitions #BusinessBrokers #MandAMarket #DailyBusinessAcumen… Read More »2020 active Buyers – main street
Many business owners have operated their companies for too long and have lost their interest or drive. As a result, the business can flounder and stop growing. Not only do revenues and profits suffer, but the value of the company goes downhill. And it only gets worse in a down… Read More »Tip #26 Owner Burnout is Bad for Business!
The highest seller-sentiment in the Main Street market was last seen in Q1 2018 with a 72% score in the $1MM-$2MM sector (now at 46% in Q4 2020). Peak seller-sentiment in the lower middle market was last seen in Q1 2015 at 86% in the $5MM-$50MM sector (now at 63%… Read More »Business Sales: Seller Market* Sentiment
29 states and D.C. have a rate higher than the federal minimum of $7.25 per hour, which was introduced in the Fair Labor Standards Act of 1938 Source: Statista/National Conference of State Legislatures #DeltaBusinessAdvisors #MergersandAcquisitions #BusinessBrokers #MandAMarket #DailyBusinessAcumen #MinimumWage #Statistita