General

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.

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.

Deal financing has not changed significantly since before the pandemic. On average, sellers continue to receive 80% or more of total consideration as cash at close. (Cash at close includes senior debt and buyer equity.) Seller financing accounts for 14% or less of most deals. yesterdays chart focused on %… Read More »Seller Financing

Deal financing has not changed significantly since before the pandemic. On average, sellers continue to receive 80% or more of total consideration as cash at close. (Cash at close includes senior debt and buyer equity.) Seller financing accounts for 14% or less of most deals. Tomorrows chart will focus on… Read More »Cash at Close

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 4.1x EBITDA, a notable drop over the past few years. Notably, those sellers also received valuations at 104% of benchmark. This shows the sophistication of… Read More »Average Multiples By Deal Size 2019-2022

Despite the solid performance evidenced in the business values above, advisors are reporting a significant drop in seller market sentiment. (A seller’s market occurs when demand exceeds supply. In a seller’s market, buyers compete in order to win deals. This typically translates to increased values and more favorable deal terms… Read More »Seller’s Market Sentiment Q4 2013-2022

On average, sellers are receiving valuations at 89% of benchmark or better. As is the trend, businesses in the lower middle market performed the best, receiving nearly all or above the private benchmark they set with their advisors before going to market. Multiples remained relatively consistent across market sectors, with… Read More »Average Selling Price by Asking/Benchmark Price 2019-2022

As shown in the market pulse report Q4 2022. Data shows that of the deals that successfully closed, nearly half (47%) had at least one other offer on the table and 40% had at least two other offers. Notably, the lower middle market businesses were more likely to garner multiple… Read More »Closed Deals With Mutiple Offers