A Look at EBITDA Multiples in 2Q 2022

Member resources:

Frequent asked questions:

What is Searchfunder.com?

Searchfunder.com is an online community of searchers, investors, lenders, brokers and other professionals. Over 80% of those involved in searchfunds maintain a Searchfunder account to help them network, hire, and mentor others.

What are the benefits of membership?

In addition to accessing the most active online network of business buyers, Searchfunder licenses research that is simply not cost effective for individuals. Access over 15,000 industry reports and 50,000 transaction financials. You also get monthly credits for contact information for your company sourcing campaign with the option to purchase more at drastically discounted rates. Searchfunder has pre-purchased access from these data providers in order to empower individual buyers and to help searchers level the playing field versus private equity.

Do you have deals?

While we are primarily a buy-side network, we do have hundreds of brokers that regularly post deals to the community.

Can I find an internship on Searchfunder?

Absolutely! We have the industry's largest intern job board. If you are considering a search, the first step is to help another business buyer so you can hit the ground running.

What does it cost?

Searchfunder is a subscription service. We offer flexible monthly, annual and lifetime memberships.

Monthly

$79 / month

Annual

$19 / month

Lifetime

$432 / once

Those who maintain an account with us for over 4 continuous years are permanently added to the community without the need for a membership.

Do I need an MBA to join?

While a large number of our members come from dedicated programs at Harvard Business School, Stanford GSB, Chicago Booth, and other top programs, searching is no longer reserved for the elite. With the current abundance of dry powder in private equity, and an increasing number of business owners reaching retirement age, good deals rarely go unfunded.

Post a question, deal, job, etc...

Make a post...

Complete registration to post.

by a searcher from Southern Oregon University
in Portland, OR, USA

3yrs ago

A Look at EBITDA Multiples in 2Q 2022

The selling price-to-EBITDA multiple ticked up modestly in the first quarter of 2022 before declining sharply in the second quarter ofredactedEBITDA margins (EBITDA as a percentage of revenue) remained near 16% in the second quarter of 2022 after previously hovering between 11% and 12% between the first quarter of 2019 through the fourth quarter ofredactedEBITDA margins were at their lowest point in the fourth quarter of 2016, at 9%.

redacted

5 Likes

346 Views

reply by a searcher 3yrs ago
from Southern Oregon University in Portland, OR, USA

The data is derived from private-target transactions in the DealStats platform, a database with extensive details on 45,000 business transactions. That data is further broken down by sector in the full report; you can see a summary of the various deal sizes and sectors here: redacted

reply by an intermediary 3yrs ago
from Harvard University in San Diego, CA, USA

Something I noticed in the data is that Q2 looks to be a bit of a down quarter historically. I'm guessing that these multiples will rebound quickly. One of the other slides in the report was that EBITDA margin increased during this time period as well. Sellers are making more and expected to sell for less. My guess is that they will wait until they can get a better valuation.