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General

Active Buyers in 2022 – Lower Middle Market

Individual buyers made their mark in the lower middle market as well, at 35% of acquisitions (18% first time buyer, 17% serial entrepreneurs). Once again, private equity made about a quarter of the acquisitions in this market.

Active Buyers in 2022 – Main Street

Individual buyers dominated the Main Street market in 2022. Calculating survey responses for all four quarters, we see that first time buyers made 39% of Main Street acquisitions followed by serial entrepreneurs (buyers who’d owned a business before) at 36%. This is relatively on trend.

Main Street Business Sales By Industry 2022

Looking at data for the whole year, most Main Street transactions occurred in the following industries: Restaurants (18%), personal services (17%), business services (13%), and consumer goods/retail (13%). As outlined in the Q4 2022 Market Pulse report

Months from LOI to Close

The average time to sell a small business stayed relatively consistent in Q4 2022, varying from six to 10 months. Of that time roughly 90 days are spent in due diligence, after a signed letter of intent or offer.

Months From Engagement To Close

The average time to sell a small business stayed relatively consistent in Q4 2022, varying from six to 10 months. Of that time roughly 90 days are spent in due diligence, after a signed letter of intent or offer.