Advisors reported that 45% of their engagements terminated without closing in Q1 2022. For the second quarter in a row, this marks one of the lowest termination rates in survey history. Engagements terminate for a variety of reasons, including unrealistic seller expectations, distressed business performance, or other factors that make the business unsalable.
Meanwhile, advisors are also reporting a strong uptick in the number of new clients coming to market in Q1 2022. More than 50% of Main Street advisors said their number of clients “greatly increased” while over 60% of lower middle market advisors said the same.
