EP 90: Q1 2023 Business Valuation Market Data Insights

Welcome to the Defenders of Business Value Podcast with your host, Ed Mysogland.

In this episode, we dive into the latest market multiples and their implications from DealStats. The 2Q 2023 issue highlights the trends and pricing multiples in Q1 2023, in addition to covering quarterly periods over the past five years and annual periods over the past ten years. Included is a highlight of the EBITDA multiple which shows a decrease in the 1Q 2023 multiple to 3.0x. The chart also highlights the median selling price/EBITDA with the trailing three-quarter average over five years.

The summary of this episode was: 

The median net sales multiple in the all-transactions category rose to 0.55x in 2021 and 0.58 in 2022 after being at 0.47x in 2020, the lowest value in the period analyzed. Generally, in 2022, almost all types of transactions faced a downward trend except for private buyer/private seller transactions, where the multiple increased by 5% compared to its previous figure in 2021.

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About the Show

The Defenders of Business Value Podcast combines nearly 31 years of valuation and exit planning expertise working with business owners. Ed Mysogland has a mission and vision to help business owners understand the value of their business and make it a salable asset. Most of the small business owner's net worth is locked in the company, and to unlock it, a business owner has to sell it. Unfortunately, the odds are against business owners that they won't be able to sell their companies because they don't know what creates a saleable asset. Ed interviews experts who help business owners prepare, build, preserve, and one-day transfer value with the sale of the business.

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