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Delta Business Acumen

Seller’s Market Sentiment Q1 2014-2024

Advisors reported an uptick in seller confidence, although still well off previous peaks. (A seller’smarket occurs when demand exceeds supply. In a seller’s market, buyers compete in order to windeals. This typically translates to increased values and more favorable deal terms for the seller.)

Average Multiples By Deal Size 2021-2024

Multiples remained consistent across the Main Street market. Meanwhile, advisors reported a meaningful increase in multiples (up a half percentage point or better, year over year) in the Lower Middle Market.

Buyers are largely disregarding the financial impact, whether positive or negative, that COVID-19 had on acquisition targets

“Historically buyers would go back and look at three years’ worth of financials, but because that’s on the tail of COVID, many are asking for 2019 to current,” said Lisa Riley, CEO & Founder of Delta Business Advisors, LLC. “So many sellers are being asked to provide five years of… Read More »Buyers are largely disregarding the financial impact, whether positive or negative, that COVID-19 had on acquisition targets

Average Multiples By Deal Size Q4 2020-2023

Multiples remained relatively consistent across market sectors, with one notable exception. Advisors reported that businesses with enterprise value of $5M-$50M received an average valuation of 5.3x EBITDA, a meaningful jump over last year, but still down from the red hot market in Q4 2021.