Quarterly Insights: A Promising Yet Cautious Outlook

Q4 2024 Survey Findings

The latest survey from 368 business brokers and M&A advisors indicates a cautiously optimistic outlook for 2025. While interest rate reductions and political stability support market growth, concerns over tariffs and lending restrictions remain.

Challenges for Business Owners

Access to Capital: 43% of advisors note stricter lending conditions.
Impact of Tariffs: 34% of advisors see potential negative effects on clients.

Opportunities for Sellers

Despite financing constraints, well-positioned businesses continue to attract competitive offers. Strategic preparation remains key to maximizing value.

What's Next?
Even in a cautious market, businesses that are well-positioned continue to secure strong offers. But how do you know what your business is worth?

In our next post, we’ll break down the key factors driving business valuations in 2025 and what sellers can do to maximize their value.

Understanding Business Valuations in 2025

February 26, 2025

Understanding Business Valuations in 2025 How Business Valuations Are Holding Steady Business owners selling in 2025 can expect stable valuation benchmarks. Sellers in the Lower Middle Market ($2M-$50M) are securing 100% or more of their asking price, with EBITDA multiples averaging 6.0x. Key Valuation Metrics EBITDA Multiples: Range from 6.0x to 8.25x for top-performing companies. Main Street Businesses: Achieving 94% of the asking price on average. Factors Affecting Valuation Financial Health: Strong records yield better valuations. Industry Demand: Certain sectors perform better than others. Competitive Advantage: Unique positioning increases buyer interest.

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