Q3 Deal Terms, 2021 & 2022
Financing structures remain relatively consistent year over year. In depressed market conditions we would expect to see an uptick in seller financing and earnouts. That has not materialized yet.
Financing structures remain relatively consistent year over year. In depressed market conditions we would expect to see an uptick in seller financing and earnouts. That has not materialized yet.
It is tough to beat the multiples of last year and businesses are still selling, however the optimism is down.
Multipliers are still good even if the market is declining slightly Confidence may be declining, but deals are still happening, and the market is still driving a premium for quality businesses, There are a lot of media sources there telling us the sky is falling, but it’s still up there… Read More »Median Multiples
Most sellers continue to receive valuations at 94% of benchmark or better. Multiples were steady or better in all but the highest value market sector.For businesses with enterprise value of $5 million to $50 million, survey results are intriguing. Those businesses received valuations at 102% of benchmark, even as multiples… Read More »Average Sale Price Realized To Asking/Benchmark Price
The multiples expectations are down across the board. Market optimism is dropping, as approximately 40% of advisors predict the Main Street and lower middle markets are headed for a decline in the year ahead. The remaining 60% are roughly split on whether they believe market conditions will stay the same… Read More »Expectations For Business Valuations, 5-Point Scale
Interest rates is the items that has had a negative impact, followed closely by recession and inflation. So top 3 are triggered by out of control inflation. Last quarter, advisors pointed to labor shortages as the biggest negative impact on M&A. Now that issue doesn’t even reach their top four… Read More »Socio-Economic Factors Affecting Market Conditions
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After spiking this spring and summer, they are now back to somewhat normal demands. This indicates that the supply chain issues may be easing, it could also indicates the volume is down.
The strategic petroleum reserve has only been tapped 3 time before 2022. We are now down to leves we haven’t seen since the mid 1980s. About the SPR The Strategic Petroleum Reserve (SPR), the world’s largest supply of emergency crude oil was established primarily to reduce the impact of disruptions… Read More »Strategic Petroleum Reserve
With the rate increases the housing market and pricing are just taking a beating, this may spread as people begin to realize their net worth is dropping. The new GDP numbers are out, and one striking thing to draw from them is this: The housing sector is overwhelmingly bearing the… Read More »Housing Is Taking It On The Chin