How are searchers out there managing their and sellers' expectations around valuations in the context of rising rates? The Fed prime rate as of FEB###-###-#### is 7.75% and I assume the lending rates will be 3% on top of this, in the realm of 10.75% (give or take a few). As is obvious, this really impacts the amount of debt that can be taken in a deal and the net earnings for the searcher.

I would be curious to know from the community how this is percolating to valuations and negotiations around valuations in the current market. Are valuations trending down with sellers lowering their expectations (just like housing markets)? Are searchers pausing their search (probably unlikely)? Are you seeing less options from lenders? Are you as a searcher being open to survive on less SDE in order to get a deal done? Are you planning to buy now and refinance the deal at a later date once rates go down? Any other shifts in dynamics?

I prefer to know more from self funded searchers funding largely through SBA loans and seeking sub $2M EBITDA deals but it would also be great to hear thoughts from other searcher profiles.