National Survey: Intense M&A Pace Will Continue in 2022
February 8, 2022 – INDEPENDENCE, OH – Business advisors are optimistic that the intense pace of mergers and acquisitions that occurred in 2021 is likely to continue into 2022. According to the Q4 2021 Market Pulse Report published by the International Business Brokers Association (IBBA) and M&A Source, almost half of advisors reported a significant increase in closed transactions than in 2020.
Time to close shrank in nearly all market segments. Businesses with a <$500K or less transaction price had a 6-month timeframe whereas for those in the $5MM to $50MM transaction price, the median time was 10 months.
“Businesses are selling faster in this market, and that’s a function of the increased competition we’re seeing,” said Jeff Swiggett, President of VR Business Sales Mergers & Acquisitions.
Seller-market sentiment rebounded in all market sectors, with more advisors describing Q4 2021 as a “seller’s market” than a year ago and setting a new peak in all but the $5MM-$50MM sector Q4 surveys for the past 8 years.
Multiples continue to remain consistent in all categories, at or near market peak in some sectors. For those businesses selling for less than $1MM, advisors predict additional multiple growth in 2022.
2021 top industries varied by market sector. Personal services, construction, business services, and consumer goods/retail led the Main Street market in 2021, while manufacturing, construction and wholesale/distribution led in the lower middle market.
About the Market Pulse Report
The Market Pulse Report compares conditions for businesses being sold on Main Street (values of $0-$2MM) to those being sold in the Lower Middle Market (values of $2MM-$50MM). The Q4 2021 survey was conducted January 1-15, 2022 and completed by 416 business brokers and M&A advisors. Respondents completed 379 transactions this quarter. This is the 39th edition of this quarterly report.
About International Business Brokers Association (IBBA) and the M&A Source
Founded in 1983, IBBA is the largest non-profit association specifically formed to meet the needs of people and firms engaged in various aspects of business brokerage and mergers and acquisitions. The IBBA is a trade association of business brokers providing education, conferences, professional designations and networking opportunities. For more information about IBBA, visit the website at www.ibba.org or follow the IBBA on Facebook, Twitter and LinkedIn.
Founded in 1991, the M&A Source promotes professional development of merger and acquisition professionals so that they may better serve their clients’ needs and maximize public awareness of professional intermediary services available for middle market merger and acquisition transactions. For more information about the M&A Source visit www.masource.org, or follow the M&A Source on Facebook, LinkedIn and Twitter.
Contact:
IBBA
Kate Stretar, Director of Operations
216-674-0533
[email protected]
or
M&A Source
Steve Gigantiello, Director of Operations
404-477-5167
[email protected]
or
Lisa Riley, PhD, CBI, CM&AP
IBBA Market Pulse Chair / Board Member
Principal – Delta Business Advisors
480-686-9031
[email protected]
IBBA Magazine
IN THIS ISSUE: “The Next Chapter,” Letter from the 2026 IBBA Chair. Plus, The Integrated Deal Platform, The Listing That Should Never Have Been Listed, Putting AI to Work in Your Brokerage, and more!
Articles
A pre-engagement framework for knowing when to walk away, before you invest 60 hours in a deal that was never going to close. I once spent six months working a listing that checked every box on paper. Profitable service business, clean books, motivated seller, reasonable asking price. We went to market, fielded fourteen NDAs, and […]
Articles
The business brokerage and M&A advisory profession is going through a quiet but significant shift in how deals are packaged, marketed and executed. Buyers now expect a level of presentation that a decade ago would have been reserved for major sell-side mandates. Sellers are more attentive to confidentiality and want to know exactly who has […]
Newsletter Sign UpGet the latest insights on buying and selling small businesses direct to your inbox.
