PowerComps by TagniFi: Market Conditions Q3-2025

TAMPA, Fla., Nov. 4, 2025 /PRNewswire/ -- Market conditions for private business sellers have turned to quality middle-market businesses fetching solid multiples, while businesses in cyclical industries are challenged to find buyers despite soft valuation, according to PowerComps Q3-2025 report.  Sell-side bankers report of a recent improvement in seller's coming to market.  The report highlights average valuation multiples on transactions completed in the sub-$50 million size range have solidified, while transactions with above $8 million of EBITDA have been stymied.

PowerComps contributors reported on 184 transactions valued between $1 million and $1 billion in the 12-month period, averaging 7.7x adjusted EBITDA.

"When we drill down by size," said Bob Wegbreit, Managing Director of Private Markets for TagniFi, "we see a median multiple of 6.4x in the $10-50mm space compared to 9.1x multiple in the $200-500mm range."

Launched in May, PowerComps already collects confidential transaction information from over 100 buy-side and sell-side dealmakers.  The database has transaction benchmarks on over 1,200 deals since launching the platform.

"Advisors and buyers of middle-market private businesses are using PowerComps data to manage valuation expectations", noted Wegbreit, "A machinery-manufacturer with $1.5mm in EBITDA may sell on average at a 4.5x multiple of adjusted EBITDA, while a similar company with $10mm in EBITDA would trade closer to 9x."

Corporate strategic buyers continued to be the most active group in the last twelve-month period. In the sub $50 million TEV range 60% of the reported deals were acquired by corporate strategic buyers compared to 30% private equity and family office buyers.  However, private equity deals favored higher margin businesses—the average private equity deal transacted with a 19.5% EBITDA margin compared to corporate buyers showing more tolerance, buying companies with an average 16.2% EBITDA margin.

Industry Focus: 10 Most Active Industries (Deals with TEV $10-100MM)

The PowerComps database is available to 6-digit NAICS industry codes where multiple deals have been submitted. This quarter we focus on the $10-100mm deal size. Software transactions received the highest average multiples which aligns with high-margin businesses.

On the lower end of the multiple range, Specialty Trade Contractors averaged multiples of adjusted EBITDA at 6.2x on a $29 million enterprise value average. Valuation multiples in this industry group ranged significantly as deal size increased. Current market conditions do not reflect well on these cyclical industries.

Chemical Manufacturing and Machinery Manufacturing multiples were higher than anticipated, though we caution the larger, average deal size in these groups, $51 million and $47 million, respectively, contributes to the relative premium as does lower deal volume, reflecting selective buyers.

Deal Terms

The PowerComps database also tracks deal terms—indemnification, escrow, earnouts and rollover equity.  Earnouts were reported on over 20 percent of the $1-10 million dollar deals, averaging 20 percent of the deal value with a median 21-month duration.

PowerComps is accepting qualified contributors from private equity, family office and sell-side M&A advisory firms. Contributors receive complimentary access to the PowerComps database in exchange for participation.  Deal information is blinded, so individual deals are never disclosed.

Media Contact:
Bob Wegbreit
800-824-6434
[email protected]

SOURCE TagniFi