Mini Market Update

Despite a slower overall M&A market, we are noticing increasing engagement & activity in the small business sector (EBITDA < $5 million) with interest from both the buy & sell side of transactions. We are getting calls on a regular basis from business owners in this demographic that are looking for exit/transition options.

Many of our opportunities are being referred to us by wealth advisors and accountants that are helping their clients determine their retirement options and the sale of the business is one of their largest considerations.

We’re attributing this increase in the lower end of the market as opposed to mid level sales to the key-man dependency dilemma. Smaller businesses don’t often have the in-depth team in place to immediately replace ownership management responsibilities & need help from outside resources such as investors and entrepreneurs.

We have noticed deal times are slowing down with increased due diligence and delays in bank financing approvals when needed. However, the “roll-up” approach is still in high demand by strategic buyers, as a fast way to grow market share &/or expand capabilities.