In Q3, final sale prices came in anywhere from 85% to 109% of the pre-set asking price or internal benchmark. Lower Middle Market companies in the $5M-$50M range achieved the highest values at 109% of benchmark. Businesses with values of $5 million or more typically do not have a published asking price. Lower Middle Market opportunities are in high demand.
Final Price Realized vs. Asking Price, Q3 2016-2019
The International Business Brokers Association (IBBA) and M&A Source, in partnership with Pepperdine Private Capital Markets Project, set a goal to provide quality information on a quarterly basis in order to become the go-to source for Main Street and Lower Middle Market transactions. Data reported here are from the Executive Report or the Quarterly Survey Results available to Participants. The Market Pulse Executive Reports can be found: https://www.deltabusinessadvisors.com/market-pulse/.