Market Pulse Survey – 1st Quarter 2019 Presented by IBBA, M&A Source and in Partnership with Pepperdine University
In Q1, final sale prices came in anywhere from 85% to 101% of the pre-set asking price or internal benchmark. Lower middle market companies in the $5 million to $50 million range achieved the highest values at 101% of benchmark.
“Businesses with enterprise value of $5 million of more are most in demand right now. The market is not cooling at all for those sellers,” said Gary Papay, managing partner of IBG Business. “That’s reflected in supply-demand sentiment and multiples.”
“Typically, businesses with values of $5 million or more do not have an asking price. So those businesses have a better possibility of achieving values above the internal benchmark,” Papay continued.