Business Valuation Multiples Move Higher

According to GF Data, ® valuations of middle-market companies in Q3 eclipsed previous highs with an average Total Enterprise Value/Adjusted EBITDA multiple of 7.5x on deals with an Enterprise Value 1 of $10 million to $250 million. Year-to-date average valuation multiples are 7.1x (see Chart A). While the number of completed middle-market deals year-to-date is down from the comparable 2016 period, demand for companies with above average financial performance remains very strong. This demand in conjunction with the availability and use of higher leverage by buyers, is largely responsible for the record high valuation multiples.

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Business Valuation Multiples at Record Highs

According to GF Data, ® valuations of middle-market companies in Q3 eclipsed previous highs with an average Total Enterprise Value/Adjusted EBITDA multiple of 7.5x on deals with an Enterprise Value 1 of $10 million to $250 million. Year-to-date average valuation multiples are 7.1x (see Chart A). While the number of completed middle-market deals year-to-date is down from the comparable 2016 period, demand for companies with above average financial performance remains very strong. This demand in conjunction with the availability and use of higher leverage by buyers, is largely responsible for the record high valuation multiples.

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Quick Hitting Advice on Selling a Business for a Busy Business Owner  

Bill Quish has over 530 business owners and professionals following his advice (Tweets) on Twitter regarding all aspects of selling a business. The following is a first in a series of articles that highlight some of his advice for business owners. 

My reality check rule when selling a business is to “see things from the other party’s perspective.”  This approach will keep you grounded and increase your chances of achieving a successful transaction

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