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Average Final Price vs. Asking/Benchmark Price, Q2 2019-2022

Market vs Sold

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. Those between $1M & $2M may fall in either camp. It greatly depends upon type of Buyer.

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% of benchmark price.