Current trends

March 21, 2023

by a searcher from The University of Michigan - Stephen M. Ross School of Business in Santa Clarita, CA, USA

For recent transactions,

1) how are the valuations looking - please specify industry/business type

2) interest rates so high, how are you planning to fund the operations - are there people accepting a pay cut temporarily to make room to pay for Opex

3) when do you expect will be the ideal time to go on shopping spree (market bottom). Is there any data that may be helpful from previous down-cycles?

4) with so many searchers and more sophisticated people stepping down in this space, how are your LOIs being received as a self funded searcher

Reply by a searcher
from University of Mumbai in Dallas, TX, USA

Agree with @Geming Lui, I see little price difference over last few months when interest rates have gone up significantly. I am hoping next few months will start putting some downward pressure on prices as demand-supply equilibrium catches up

Reply by a searcher
from Vanderbilt University in St. Louis, MO, USA

I think some brokers don't really keep the higher interest rates in mind when they value a business.

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