Market Pulse Q4 2021

IBBA Q4 2021-MarketPulse

SURVEY REPORT Q4 2021

Market Outlook Positive for 2022

Deal activity continued at an intense pace in the fourth quarter of 2021, as advisors reported an uptick in both incoming deal flow and completed engagements. More advisors characterized
this as a seller’s market than nearly any other time in the survey’s 10-year history.

Businesses with enterprise value of $5 million to $50 million earned an average multiple of 6.0 (another survey peak), realizing an average final sale price at 113% of benchmark. Meanwhile, time to close shrank in nearly all market segments. Time to close was likely facilitated by the higher rate of buyer competition as well as a push to get deals closed before year-end.