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International Business Brokers Association's Q4 2023 MARKETPULSE Report

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Jeff Snell | 02/16/2024

Welcome to the International Business Brokers Association's Fourth Quarter 2023 MarketPulse 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 IBBA Market Pulse Report, we will focus on three key market factors, starting with the Average multiples of earnings paid by business buyers. Then, the sentiment in buyer's versus seller's market by transaction size. And finally, the number of offers received by transaction size.

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 4.1 times to a high of 6 times earnings during he 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 market improved for sellers marginally over the fourth quarter of 2022, but still favors buyers in all value ranges under $2 million.

Sellers only experienced a slight edge in transaction multiples from $2 million to $50 million of enterprise value.

When reviewing the number of offers received on varying size businesses, in general, the larger the business, more offers were received. However, businesses valued between $2 million and $5 million broke the trend.

Note that this data does not necessarily imply that sellers had multiple offers to review at the same time.

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’s Fourth Quarter 2023 Market Pulse Report.

For the full report and other useful business transaction information, visit our blog at enlign.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.