Any recent evidence of repricing in lower middle market deals?

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May 20, 2022

by a searcher from University of Virginia-McIntire - McIntire School of Commerce in Washington, DC, USA

Curious if buyers in lower middle market are renegotiating purchase prices on deals given the recent turmoil in the equity market? If yes, what market comps are being used? Alternatively, are deals being put on hold?

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Reply by a searcher
from Columbia University in Saratoga, CA, USA
YCombinator just put out info for founders to batten the hatches. They think otherwise https://news.crunchbase.com/news/y-combinator-startup-warning-letter-downturn-2022/?utm_source=cb_daily&utm_medium=email&utm_campaign=###-###-#### &utm_content=intro&utm_term=content&utm_source=cb_daily&utm_medium=email&utm_campaign=###-###-####
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Reply by a searcher
from University of Pennsylvania in Chicago, IL, USA
Financing costs are increasing and economic risks are increasing (recession could kill off demand in a major way)- prices have to come down as a result. Lower pricing is the only way to overcome these issues - but when prices/multiples have been setting records - it is hard for sellers to make the first move. Soon though they will be faced with the decision of selling now at lower pricing or not selling. There are always exceptions but that is the basic reality.
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