VALUATION METRICS – PRIVATE COMPANIES Privately Held, Middle Market Company Landscape (All Industries)
TEV / EBITDA – All Transactions, Annual
4.0x 4.5x 5.0x 5.5x 6.0x 6.5x 7.0x 7.5x 8.0x
7.6x 7.5x
7.2x 7.2x 7.1x
7.2x 7.1x
7.0x
6.7x 6.7x
6.4x 6.4x
6.0x 6.1x 6.1x
5.8x 5.7x
Source(s): GF Data (through Q3 2024)
Private transaction multiples have decreased from the temporary all-time highs experienced during 2021 and 2022, returning to more normalized levels in line with pre-COVID valuations and supported by similar patterns in public company trading multiples.
Middle Market Deal Volume
0 100 200 300 400 500 600
501
340 Projected
335 342
334
305
294
273
245
245 243
213
202 211
155
124
65
Source(s): GF Data (through Q3 2024)
We saw a rebound in M&A volume, driven by a strong Q4 2024, and anticipate middle market M&A activity to continue to pick up in 2025. Decreased borrowing costs, near-record amounts of private equity dry powder, and increased political certainty in a post-election year are poised to drive this recovery.
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