Mid Market Buyers Report Historic Strong Valuations and Demand for Private Businesses
Principals of IBG Business met face-to-face with private equity and family office groups who are seeking mid-market acquisitions. In addition to presenting IBG's clients' businesses as business purchase prospects, IBG's M&A brokers and advisors polled these top buyers, surveying key market factors.
The consensus of the professional buyers most active in today's acquisitions market was clear. Numbers of transactions being completed in the lower middle market space is fairly stable, with some growth over the period 2012 - 2014, and in the outlook for 2015 closings. Deal volume growth is expected to slow slightly into 2015 versus recent years.
High valuations continue to be driven by high availability of funds, low interest rates, and competition for too few businesses available in the market. The valuations are seen to be higher than normal, with a strong majority of buyers reporting "all time high valuations" are prevailing. It is expected business values will trend down as interest rates rise and more business sellers enter the market to compete in absorbing the money available to fund purchases.
IBG's M&A brokers and advisors have specialized in the sale of closely held middle market businesses since 1986. IBG has principal offices across North America.