First-time buyers are actively participating in the Main Street market, whereas strategic buyers and private equity firms gain prominence as the deal size increases. Motivations of buyers also change, with an emphasis on acquiring jobs in lower-value ranges and a growing focus on strategic expansion in higher-value segments. Moreover, there… Read More »Buyer Location Varies By Acquisition Price
Year-over-year trends show an increase in cash at closing with the exception of companies which sold between $5MM to $50MM.
The average time to sell a small business increased across most deal sectors, with a significant jump for businesses valued at $5 million or more. Of that time roughly 60 to 120 days are spent in due diligence and execution, after a signed letter of intent or offer.
The average time to sell a small business increased across most deal sectors, with a significant jump for businesses valued at $5 million or more. Of that time roughly 60 to 120 days are spent in due diligence and execution, after a signed letter of intent oroffer.
It appears that Buyers are paying much more in interest now. Thus, they either put in a lower price or accepted smaller returns, and right now the lower price appears to be winning.
It appears that Buyers are paying much more in interest now. Thus, they either put in a lower price or accepted smaller returns, and right now the lower price appears to be winning.
Q2 trends shows a downtick in confidence year-over-year. This could be due to any number of market headwinds, including high interest rates, tightened lending, and concerns over a soft recession ahead in 2024. “Seller confidence is tracking close to 2012 levels, just when we were starting to emerge from Great… Read More »Seller’s market sentiment, Q2 2012, 2018, 2023 by Deal Size
Lending Environment Remains a Challenge A question on the lending environment revealed widespread concern among respondents. Across all deal value segments, the majority (57-58%) perceived the lending climate to have worsened from Q1 to Q2 this year. Only a small percentage (3-4.5%) reported an improvement in lending conditions, indicating caution… Read More »Q2 2023 Lending Environment Impact On Deals by Size Compared to Q1 2023
Greater Interest from PEGs and Former C-suite Individuals Anecdotal evidence suggested advisors were fielding greater interest from private equity groups (PEGs) as well as individual buyers alike. Interest appears to be peaking among former C-suite individuals who generally have the net worth, the professional network, and the capabilities to consider… Read More »Increased Number of Buyer Inquiries by Deal Size in 1st Half of 2023
How Advisors are Using AI Tools in 2023 Artificial Intelligence (AI) is becoming a game-changer across industries, and the M&A market is no exception. In the Q2 survey, we explored how our industry perceives AI, the current adoption rates of AI-powered tools, and the diverse ways in which AI could… Read More »Advisors’ Views On AI Impact For Industry