What Are They Buying?
In the Main Street market, restaurants and personal services trended throughout the sector. In the Lower MiddleMarket, construction/engineering and manufacturing dominated transactions.
General
Tip #068 Timing is key, selling at the top of the revenue cycle will bring the highest dollar.
Most businesses do show a revenue cycle, and selling at the top of the cycle will bring the most money. But if the revenues have dropped, or are at a low point, then offers will reflect that. Buyers are not interested in having to use their resources and efforts to… Read More »Tip #068 Timing is key, selling at the top of the revenue cycle will bring the highest dollar.
Percentage Of $5m-$50m Deals Captured By Private Equity Vs Strategic Buyer
Over the last eight quarters, private equity has captured an average 41% of the deals in this sector while strategics accounted for 40% of buyers (see figure below)
Weeks From Offer To Close
The average time to sell a Main Street business varies from 7 to 9 months. Businesses in the LowerMiddle Market, however, saw an uptick in time to sell. The offer to close stayed somewhat consistent with the larger businesses taking a bit longer.
Weeks From Engagement To Close
The average time to sell a Main Street business varies from 7 to 9 months. Businesses in the LowerMiddle Market, however, saw an uptick in time to sell. Businesses in the $5M-$50M sector took 13months to sell, on average. That matches the peak average reported during the pandemic.
Accelerent Executive Round Table
Thank you, Nate Jack, for hosting our Accelerent Executive Roundtable breakfast this morning at Paul Martins. It was great to gain insights from the CEOs and executives in attendance. Karen Bottesch Bank of AmericaLaura Hanchett Benefit Commerce GroupLisa Riley Delta Business AdvisorsJillian Zeeb Heidi’s Events & Catering, Inc.Adam Lavazza Lavazza SafetyGregg Kafka … Read More »Accelerent Executive Round Table
Percentage of $5M-$50M Deals Financing by Earnouts 2021-2024
“We expected to see earnouts rise as a response to COVID-19 bumps and slumps, but it’s been interest rates that have really been the driver,” said Simon Harrison, Senior Advisor of Boss Group International. “Earnouts can be a way for sellers to receive their desired valuation, while buyers mitigate their… Read More »Percentage of $5M-$50M Deals Financing by Earnouts 2021-2024
Another Great WATT meeting
Wow! What a fantastic meeting! A big thank you to Leslie Kland for your leadership over these past months, the board for all their hard work, and our incredible Julie for sharing her amazing talents with us. The business insights were both informative and entertaining, covering everything from social security… Read More »Another Great WATT meeting
Seller Financing Q1 2014-2024
Seller financing accounted for 15%-17% or more of most deals in Q4 2024. For deals valued between $5 million to $50 million, earnouts (6%) and retained equity (3%) also played a meaningful role in financing.
Cash At Close Q1 2014-2024
Cash at close includes senior debt and buyer equity. Seller financing accounted for 15%-17% or more of most deals in Q4 2024. For deals valued between $5 million to $50 million, earnouts (6%) and retained equity (3%) also played a meaningful role in financing.