The IBBA and M&A Source Market Pulse Survey Report for Q4 2023 draws on 382 business brokers and M&A advisors who closed 330 transactions. Businesses valued at $5 million to $50 million averaged 5.3x EBITDA. Sellers received about 80 percent of total consideration in cash at close, and private equity made about 23 percent of lower-middle-market acquisitions in 2023.
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Owners preparing a sale can compare Q4 2023 multiples, cash at close, and time to close by deal size. Advisors can use the buyer mix, including private equity and corporate buyers in the lower middle market, when they frame a process.
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