Market Pulse Q2 2022

IBBA Q2 2022-MarketPulse


Labor Shortages Impacting M&A

Advisors say that labor shortages have had the biggest impact on deal-making in Q1 2022. In the Main Street market, 92% say its had a negative effect (54% “very negative”). Likewise, 92% say
labor shortages are having a negative effect in the lower middle market (47% “very negative”).

More than 80% of half of advisors say inflation, interest rate hikes, supply chain issues, and cost of labor are also having a dampening effect.

Meanwhile, advisors say labor costs (44%) and supply chain costs (30%) are having the biggest net impact on sellers’ net income, followed by gas costs (8%).