Market Pulse Q4 2019

IBBA Q4 2019-MarketPulse


Market Outlook Positive for 2020

Valuations for small and medium businesses held strong in 2019, remaining at or above market peaks. In the past year, median multiples never varied more than 0.2 points in any market sector, and Q4 2019 ended on par with the year prior. Generally, business brokers and M&A advisors expect more of the same in 2020. While they do expect deal flow and successful closings to grow, advisors predict a negligible uptick in multiples this year. Specifically, 55% of advisors predict the volume of deals (under $50 million) will increase in the next 12 months, but only 7% expect an increase in multiples.