Valuations on Private Middle Market Transactions Soar!

According to GF Data who collects deal information from over 200 private equity firms on transactions that Range from $10 million to $250 million, valuations on private middle-market transactions surged to a record high of 8.1 times EBITDA in the fourth quarter of 2017 on 68 reported transactions. The previous high of 7.5x was attained in the third quarter 2017.

The rise in purchase price multiples was accompanied by an expansion of debt utilization in previous quarters but not in the 4th quarter when equity share increased from 42 to 47 percent for the reported deals. Total debt is averaging 4.3 times EBITDA for platform acquisitions and 5.5x for add-ons representing a highly leveraged basis. Recent stock market volatility and interest rate increases are not slowing the market. Fundamentally, business conditions remain strong and the tax reform legislation is very favorable to companies.

About Us

Whether you want to sell or buy a business, Chapman Associates provides a personalized service, based upon our sixty-two years of successful M&A closings and our relationships with more than 9,300 registered buyers. Chapman is one of the most respected middle-market M&A firms in the country. What makes Chapman different from the competition?

• We make a market for our clients. • We do not charge any up-front fees. • Our fees are based on successfully completed transactions. • We devote senior-level attention to every M&A transaction. • We do not delegate work to junior staff. • We help clients set realistic goals and then work hard to exceed them. • We conduct in-depth research and rigorous analysis. • We prepare all necessary offering materials. • We have seventeen offices nationwide to serve our clients.