The IBBA® and M&A Source® Announce the Latest Trends in Business Sales up to $50MM in the Market Pulse Q4 2024 Survey

INDEPENDENCE, Ohio, March 4, 2025 /PRNewswire/ -- Today, the IBBA^® and M&A Source^® present the results of the Market Pulse Q4 2024 Survey. Tracking Average Multiples by Deal Size from 2021-2024, the survey reports that businesses with an enterprise value of $5M-$50M received an average valuation of 6.0x EBITDA, on par with the hot market in Q4 2021. Additional key findings include trends in Market Confidence and Cash at Close vs Seller Financing. The quarterly IBBA^® and M&A Source^® Market Pulse Survey was created to understand the market conditions for businesses sold on Main Street and in the Lower Middle Market.

The IBBA^® and M&A Source^® Market Pulse Q4 2024 Survey highlights these trends:

• Market Confidence (2013-2014)
  Advisors reported an uptick in seller confidence, although still off previous peaks in Q4 2021.
• Cash at Close vs Seller Financing (2021-2024)
  Sellers received more cash at close in Q4 2024. On average, sellers can expect to receive about 84% of total consideration as cash at close. Seller financing accounts for 15% or less of most deals.
• Average Multiples by Deal Size (2021-2024)
  Multiples remained relatively consistent across market sectors, with one notable exception. Advisors reported that businesses with an enterprise value of $5M-$50M received an average valuation of 6.0x EBITDA, on par with the hot market in Q4 2021.

"Overall, the 2025 outlook remains promising. With interest rates declining and election uncertainty behind us, we anticipate a shift from 'cautious wait-and-see' to a more active deal-making landscape." – Scott Bushkie, CEO, Cornerstone Business Services

The Q4 2024 survey was conducted January 1-15, 2025 and was completed by 368 Business Brokers and M&A Advisors. Respondents completed 330 transactions this quarter. This is the 51^st edition of this report.  The national survey was conducted with the intent of providing a valuable resource to business owners and their advisors. 

To learn more, contact the IBBA directly at [email protected].

About the International Business Brokers Association^®

Formed in 1984 and with over 3,000 members today, the International Business Brokers Association^® (IBBA) is the largest international not for profit association for business brokers. The association provides business brokers with education, free benefits, conferences, professional designations, support programs and networking opportunities, and awards the Certified Business Intermediary (CBI)^® designation to qualifying business brokers.

SOURCE IBBA