Blogs
News & Events
IBBA/MAS Q1 2024 MARKETPULSE Report Share Blog
Enlign
Enlign
Jeff Snell | 05/31/2024
Click Here Welcome to the International Business Brokers Association and M&A Source's First Quarter2024
Market Pulse Report "highlights" presented by: ENLIGN Advisors, with experienced professionals serving your lower middle market to main-street business transaction requirements nationwide.
Referencing the most recent Market Pulse Report, we will focus on three key market factors, starting with the average selling price multiples paid by business buyers.
Then, changes in the percent of seller financing by transaction size. And finally, the average time required to sell by enterprise value.
Here, we can see that regardless of transaction size multiples of earnings paid by buyers were higher as the transaction sizes increased.
Additionally, transactions between $5 to $50 million reported the highest multiple variability from a low of 4.3 times to a high of 6 times earnings during the review periods.
This is likely influenced by buyer perceptions that larger businesses have less risk and are often run by management teams that do not require as much of the buyers time.
The Market Pulse Survey is reporting that the percentage of seller financing has increased significantly over the past three years.
Larger Transactions saw the highest increase in the percent of seller financing Businesses valued between 1 and 2 million dollars were the least impacted.
When reviewing the amount of time required to sell for varying size businesses, in general, the larger the business, more time was required.
However, businesses valued between $2 million and $5 million broke the trend.
On average businesses over 1 million dollars required more time to sell compared to the first quarter of 2023.
Thanks for watching.
Everyone here at ENLIGN Advisors is focused on the trends and data to deliver the highest market value, in the shortest amount of time, with complete confidentiality.
We hope you enjoyed our analysis of selected topics from the International Business Brokers Association and Merger and Acquisition Source's First Quarter
For the full report and other useful business transaction information, visit our blog atenlign.com
If you're seeking expert guidance in purchasing or selling a business, contact us today for a free consultation.
Until next time, we wish you the best in your business sale or acquisition project.