Q2 Survey Shows 87% of $5M-Plus Deals Drew 3 Offers as Multiples Hit 5.8

2 articles · Updated · Yahoo Finance · Aug 25

87% of businesses sold for more than $5 million in Q2 drew at least three offers, and 33% attracted 10 or more bids, underscoring intense competition for larger assets.
Valuation multiples rose most at the top end of the market, with the $5 million-$50 million segment climbing to 5.8 from 5.5 — the highest level since Q1 2022.
Roughly three-quarters of advisers said the $2 million-$50 million market favored sellers, while the smallest Main Street deals still leaned toward buyers.
83% to 92% of deal value was paid in cash at closing, with seller financing below 10%, though closings stretched from six to 10 months for Main Street deals and about a year in the lower middle market.
255 brokers and M&A advisers completed the Q2 survey after closing 181 transactions, and they expect healthy deal flow ahead without a broad rise in pricing.