The Main Street market is rarely affected by the larger dealmaking environment. For example, over the last 40+ Market Pulse surveys, the median multiple for businesses valued under $500,000 hasn’t shifted beyond 2.0X to 2.3X.
However, we’re seeing a resurgence in value in the $5 million+ sector. It’s worth noting that the Q3 2021 multiple of 6.8 in this sector represented an all-time high in the 10-year history of the Market Pulse Report. Now, with a median EBITDA multiple of 6.5 in Q3 2023, we may be seeing a return to an M&A bull market.