Wondering about the current M&A market?
Looking for data and insight into the current market for private businesses – good news – you found it!
The roofing business we took to market in late August received interest from 97 buyers. Yes, 97.
We received 9 offers!
Key? A defensible, market-based valuation. Organized financials. Preparation.
We are seeing TREMENDOUS demand for quality businesses.
If a sale of your business is on your horizon in the next 1 – 3 years, remember:
1) valuation is driven by trailing 12-month cash flow
2) you want to show stable(ish) or positive net operating income on your P&L
3) documented, verifiable Operating Income on your business IRS filings (1120 or 1065) is key
Are you an owner / future seller? Check out our 2025 Seller Guide for what to expect
Are you a prospective buyer? Do not miss Straight Talk for Buyers
Take a look at the M&A snapshot:
This is the most recent quarterly deal report from the International Business Brokers Association and M&A Source.
They are the premier organizations for M&A Advisors and Business Brokers. We are proud to be part of this tribe of experts and recurring contributors to the quarterly market summaries.
Check out pg 10, it has an excellent “know your buyer” breakdown by deal size
Pg 9 shows what industries are seeing the most activity recently
Engineering, construction, and business services remain the most active
Each of our transactions is included in the analysis, it has insight by industry, deal size, deal structure, and more.
Google says there are 11,273 private equity firms, family offices, and investment groups actively searching! On top of this, acquiring and operating a business has never been more attractive to individual buyers. Many are disillusioned, no longer motivated by Corporate America, or under / unemployed. The last several years have been a wakeup call for many that they do not want to be employees any longer and/or let others dictate their fate.
Interest rates are gradually decreasing, financial markets are resilient, M&A is hot, and the regulatory & tax environment is pro-business.
Another point to keep in mind – the stock market may value ____ differently than it did a year ago, however, small to midsize businesses generally sell at a multiple of 2.5x – 5.0x trailing twelve months cash flow. This range has been remarkably consistent over decades.
We have successfully advised dozens of sellers and buyers through the sale process and will address any and all unique transition components with your business sale
That is it for today – more to come in a future post. Please forward or share this content if you find it valuable. As always, thank you for reading!
At Washington Business Brokers we are experts in valuation, optimizing a business for sale, buyer identification and qualification, negotiation, deal structuring, and closing.
We proudly represent businesses with revenue of $2M – $30M across many industries. While most businesses are in the Pacific Northwest, we work with owners across the country. Ideal prospective sellers have 10+ full-time employees and $2M+ in sales.
When the time is right for you, we will be proud to partner and advise on your fair deal.
If you would like to better understand the value of your business or learn more about the process of confidentially selling:
call or text 206.703.3555
email info@wabusinessbrokers.com
or schedule time for an exploratory, free chat
Conversations are always confidential and there is no commitment.
