Yesterday was one of my favorite nerd days of the quarter - the release of the IBBA quarterly data report. This is always a trove of great information about our space and can speak to broader macro trends. Here are the top 5 insights from the IBBA Q3 report


1) IBBA intermediaries are reporting a substantial year-over-year increase in seller financing, earn outs, and retained equity as buyers and sellers embrace these strategies to bridge gaps in a high interest rate environment. Anecdotally, one broker reported that seller financing is often at lower rates than bank rates.


2) Broker confidence is at its lowest point in the last decade, other than the pandemic year in###-###-#### This reflects market headwinds including interest rates, inflation and geopolitical uncertainty.


3) However, multiples in Q3 remained relatively stable, falling slightly in $1.5M transactions and growing slightly in $5-50M transactions.


4) Volume remains strong in the space, as a strong plurality of intermediaries reported the number of new clients in their pipeline increased over the last 3 months


5) While a little self-serving, most intermediaries expected business valuation multiples to stay the same or increase over the next 3 months, likely reflecting a continued gap between buyer and seller expectations.