The IBBA and M&A Source announce the results of the Market Pulse Survey Q2 2024. The quarterly IBBA and M&A Source Market Pulse Survey was created to gain an accurate understanding of the market conditions for businesses being sold in Main Street (values $0-$2M) and the Lower Middle Market (values $2M-$50M). The Q2 survey results indicate that the upcoming 2024 election is having an impact on deal-making decisions. Business owners are postponing their decisions to go to market, including: 25% of Main Street Sellers; and 23% of Main Street Buyers are delaying purchasing. In the Lower Middle Market sector, 26% of sellers and 20% of buyers are delaying until after the November election.
INDEPENDENCE, Ohio, Sept. 10, 2024 /PRNewswire-PRWeb/ -- The IBBA and M&A Source announce the results of the Market Pulse Survey Q2 2024. The quarterly IBBA and M&A Source Market Pulse Survey was created to gain an accurate understanding of the market conditions for businesses being sold in Main Street (values $0-$2M) and the Lower Middle Market (values $2M-$50M). The Q2 survey results indicate that the upcoming 2024 election is having an impact on deal-making decisions. Business owners are postponing their decisions to go to market, including: 25% of Main Street Sellers; and 23% of Main Street Buyers are delaying purchasing. In the Lower Middle Market sector, 26% of sellers and 20% of buyers are delaying until after the November election.
Additional Key Findings in the Market Pulse Survey Q2 2024 include:
1. Sellers are Open to Alternative Financing
- In the Main Street Market, 82% of sellers are willing to offer more competitive interest rates on seller financing than traditional lenders.
- In the Lower Middle Market, 70% are open to this approach.
2. Business Value
- Multiples for businesses under $1M have remained relatively constant.
- In the $2M-$5M range, a full point dip was reported.
- The $5-$50M segment has maintained relatively high multiples, indicating strong buyer interest in larger Lower Middle Market companies.
3. Time to Close
- The average time to sell a small business stayed relatively stable at 7 to 9 months, across most deal sectors.
- In Q2, there was a significant decline in time to close in the $5M-$50M sector, dropping from 13 to 9 months.
"Over the past decade, this survey has become an indispensable resource, shedding light on the dynamics of selling privately held Main Street and lower middle market businesses. Our commitment to providing actionable data and analysis continues to empower business brokers, advisors and business owners to make informed decisions and achieve successful outcomes." - Lisa Riley, CEO, M&A Advisor & Designated Broker, Delta Business Advisors
About the Market Pulse Report
The national survey was conducted with the intent of providing a valuable resource to business owners and their advisors. The Q2 2024 survey was conducted July 1-15, 2024 and was completed by 322 business brokers and M&A advisors. Respondents completed 222 transactions this quarter. This is the 49th edition of this report.
About the International Business Brokers Association®
Formed in 1984 and with nearly 3,000 members, the International Business Brokers Association® (IBBA) is the largest international not for profit association for business brokers. The association provides business brokers with education, free benefits, conferences, professional designations, support programs and networking opportunities, and awards the Certified Business Intermediary (CBI)® designation to qualifying business brokers. To learn more, contact the IBBA directly at [email protected] [[email protected] __title__ ].
About M&A Source
M&A Source® is the leading not for profit association for individuals and firms engaged in lower middle market business transactions. The association provides education, benefits, conferences, support programs and networking opportunities, and awards the Mergers & Acquisitions Master Intermediary® (M&AMI®) designation to qualified advisors. For additional information, contact M&A Source directly at 216-243-0030.
Media Contact
Kylene Golubski, International Business Brokers Association, 888-686-4222, [email protected], https://www.ibba.org
SOURCE International Business Brokers Association
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