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Median Multiple Off Peak

Multiples are slightly off-peak, and yet businesses in the lower middle market continue to draw values at or even above internal benchmarks.

“Volume was down in 2020 just as with other times of business downturns. But unlike during times of recessions, multiples actually stayed strong, at least for businesses that were able to weather the impact of COVID-19,” said Walt Lipski, Upton Financial Group Inc. “It comes down to supply and demand. The spread of quality sellers and buyers widened significantly in 2020, so there was competition at the table. Businesses that were relatively pandemic proof got good structures and multiples.”

Source: IBBA & M&A Source Market Pulse 2020 Q4 (published 2/9/2021)

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