Q1 2021 Market Update

Q1 2021 Market Update from

Youtube video – International Business Brokers Association – IBBA conducted a nationwide survey of Q1 2021 market update activity called Market Pulse.  Let’s take a quick look. In Q1, the average final sale price came in anywhere from 86% to 107% of the pre-set asking price or internal benchmark. Lower middle market companies in the $5 million to $50 million range achieved the highest values at 107% of benchmark.  Buyers are paying above asking price for businesses in the lower middle market.

From IBBA/Market Pulse Survey

Many business brokers and M&A advisors reported increased activity, with 41% reporting stronger deal flow over Q1 2020 and 33% reporting status quo.

A shortage of sellers is definitely creating a buyer’s feeding frenzy for businesses that are thriving.

The latest data from the Market Pulse survey reflects the growing premiums business owners receive as the size of their company increases. Multiples increase consistently as businesses get larger. And these businesses are more likely to draw buyer interest from the widest geographic radius. 

Year over year, deals took longer to close in most sectors. The $5 million to $50 million sector, however, saw acceleration, with deals taking just 10 months to close. 

From IBBA/Market Pulse Survey

In conclusion, what the Q1 market update is showing is that the market is bouncing back very quickly.  If you are thinking about selling your business now or in the future contact us


Blog Archives