Capstone Partners Reports: Middle Market M&A Valuations Moderate, Select Industries Outperform
Tightened lending conditions, increased buyer selectivity, and inflationary headwinds dampened valuations across the middle market in 2022. The average EBITDA multiple for M&A transactions under
In 2022, many buyers prioritized margin defensibility in assessing target companies. The post-COVID recovery in 2021 that brought a surge of demand encouraged many businesses to adopt a growth-at-all-costs mindset—a strategy that has proven unsustainable, evidenced by large scale layoffs and cost cutting measures among many public companies. Throughout 2022, inflation and labor challenges clearly impacted the profitability of middle market businesses involved in M&A sale processes. The average 2022 gross margin of sold middle market companies declined to
Also included in this report:
- Commentary on industry specific middle market M&A multiples and transaction volume.
- Discussion on the multiples paid by buyer type and how this dynamic has changed compared to the prior year.
- Insights to the typical margin and leverage profile of middle market target companies in 2022.
To access to full report, click here: https://www.capstonepartners.com/insights/report-capstone-partners-middle-market-mergers-and-acquisitions-valuations-index/
ABOUT CAPSTONE PARTNERS
For over 20 years, the firm has been a trusted advisor to leading middle market companies, offering a fully integrated range of investment banking and financial advisory services uniquely tailored to help owners, investors, and creditors through each stage of the company's lifecycle. Capstone's services include M&A advisory, debt and equity placement, corporate restructuring, special situations, valuation and fairness opinions and financial advisory services. Headquartered in
For More Information Contact:
Director of Market Intelligence
sdoherty@capstonepartners.com
617-619-3310
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