Market Pulse Report Second Quarter 20151 Market Pulse Report Second Quarter 2015 Scott Bushkie, CBI,...
Transcript of Market Pulse Report Second Quarter 20151 Market Pulse Report Second Quarter 2015 Scott Bushkie, CBI,...
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Market Pulse ReportSecond Quarter 2015
Scott Bushkie, CBI, M&AMI, IBBA Marketing Chair
Lisa Riley, Ph.D., CBI, IBBA Marketing Chair
Craig Everett, Ph.D. Director, Pepperdine Private Capital Markets Project
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This research was made possible with the support of the International Business Brokers Association (IBBA) and M&A
Source.
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ACKNOWLEDGEMENTS
We’d also like to thank the following people at The GraziadioSchool of Business and Management for their contributions:
David M. Smith, Ph.D.Interim Dean
John K. Paglia, Ph.D.Associate Dean, Associate Professor of Finance
Cynthia ChiltonDirector of Marketing
Irina ShaykhutdinovaResearch Associate
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I. About the Market Pulse Report……….……….…………........5
II. Current Business Environment……………………….…..……7
III. Business Transactions Closed in the Last 3 Months……….14
IV. Business Expectations………………………………….....…..84
V. About the respondents………………..….………………..…..87
Outline
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The International Business Brokers Association (IBBA) and M&A
Source, in partnership with Pepperdine Private Capital Markets
Project, have set a goal to provide quality information on a
quarterly basis in order to become the go-to source for Main
Street and Lower Middle Market transactions. The “Market
Pulse Report” gives you timely and accurate data to help you
build and maintain a successful and sustainable business.
I.AbouttheMarketPulseReport
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• 25 questions• Invited participants were members of the
International Business Brokers Association (IBBA),IBBAAffiliates/Chapters, and/or M&A Source
• 249 completed responses• Responses collected from July 1 to July 15, 2015
AbouttheSurvey
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II. BusinessTransactionsClosedintheLast3Months
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BusinessTransactions that WereClosedintheLastThreeMonthsbyDealSize
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
Dealsvaluedunder$499,999
Dealsvaluedfrom$500,000to$999,999
Dealsvaluedfrom$1million to$1.99million
Dealsvaluedfrom$2million to$4.99million
Dealsvaluedfrom$5million to$50million
Wholesample 47% 17% 15% 10% 11%
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NumberofBusinessTransactionsClosedbyRespondentsintheLast3Months
Numberofresponses=145
0
10
20
30
40
50
60
70
80
90
1 2 3 4 5 6 >10Number ofRespondents 90 33 10 6 3 2 1
10
ChangeintheNumberofNewClientsbyDealSizeinTheLast3Months
Dealsize Greatlydecreased Decreased Stayed
thesame Increased Greatlyincreased
Score(1to5)
Dealsvaluedunder$499,999 4% 10% 45% 38% 3% 3.3
Dealsvaluedfrom$500,000to$999,999 1% 9% 41% 45% 4% 3.4
Dealsvaluedfrom$1millionto$1.99million 3% 13% 43% 38% 4% 3.3
Dealsvaluedfrom$2millionto$4.99million 5% 9% 48% 33% 5% 3.2
Dealsover$5million 4% 10% 45% 37% 4% 3.3
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PercentageofTransactionsTerminatedwithoutClosingintheLastThreeMonths
53.3%
46.7%Terminated
Closed
12
Was it Buyer’s or Seller’s Market intheLast3Months?
Number ofresponses 122 104 103 78 81
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
Dealsvaluedunder$499,999
Dealsvaluedfrom$500,000to$999,999
Dealsvaluedfrom$1million to$1.99million
Dealsvaluedfrom$2million to$4.99million
Dealsvaluedfrom$5million to$50million
Buyer'smarket 62% 56% 42% 37% 22%
Seller'smarket 38% 44% 58% 63% 78%
13
ComparedtotheFirstHalfof2014,RespondentsHave
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
more same fewercloseddeals/transactions 35% 40% 26%
listings/engagements 54% 31% 15%
14
ComparedtotheFirstHalfof2014,FinancingDealsHasBeen
0%10%20%30%40%50%60%70%80%90%100%
easier similar tougherWholesample 28% 62% 11%
15
BusinessTransactionsofAllSizes,Comparison
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MedianTimetoCloseaDeal(Months)
0
1
2
3
4
5
6
7
8
9
10
<500K 500K- 1M 1M- 2M 2M- 5M 5M- 50M
5
6
8
9
8
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MedianSDEMultiplePaid
0.0
0.5
1.0
1.5
2.0
2.5
3.0
3.5
4.0
4.5
5.0
<500K 500K- 1M 1M- 2M 2M- 5M 5M- 50M
2.0
2.5
3.03.3
4.5
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MedianEBITDAMultiplePaid
0.0
0.5
1.0
1.5
2.0
2.5
3.0
3.5
4.0
4.5
5.0
<500K 500K- 1M 1M- 2M 2M- 5M 5M- 50M
2.5
3.0
3.5
4.0
5.0
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MultipleType
0.0%
10.0%
20.0%
30.0%
40.0%
50.0%
60.0%
70.0%
80.0%
90.0%
100.0%
<500K 500K- 1M 1M- 2M 2M- 5M 5M- 50MSDEincluding workingcapital 22.3% 9.8% 34.3% 12.0% 3.8%
SDEnotincluding workingcapital 69.6% 63.4% 28.6% 28.0% 3.8%
EBITDAincluding workingcapital 1.8% 12.2% 8.6% 32.0% 30.8%
EBITDAnotincluding workingcapital 5.4% 12.2% 25.7% 16.0% 42.3%
TTMEBITDAincluding workingcapital 0.9% 0.0% 2.9% 8.0% 15.4%
TTMEBITDAnotincluding workingcapital 0.0% 2.4% 0.0% 4.0% 3.8%
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BuyerType
0.0%10.0%20.0%30.0%40.0%50.0%60.0%70.0%80.0%90.0%100.0%
<500K 500K- 1M 1M- 2M 2M- 5M 5M- 50M1sttimeindividual 57.0% 49% 44% 20% 4%individualwhoowned abusiness 23.4% 28% 34% 24% 0%existingcompany/strategicbuyer 18.7% 23% 19% 36% 38%PEfirm- Platform 0.0% 0% 0% 16% 38%PEfirm- Add-on 0.0% 0% 0% 4% 12%Other 0.9% 0% 3% 0% 8%
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#1Reason forSeller to Go to Market
0%
20%
40%
60%
80%
100%
<500K 500K- 1M 1M- 2M 2M- 5M 5M- 50MRecapitalization 1% 5% 0% 0% 27%Burntout 21% 8% 9% 20% 4%Familyissues 6% 15% 9% 4% 4%Health 6% 5% 6% 4% 8%Newopportunity 14% 13% 19% 16% 8%Relocation/moving 7% 0% 0% 4% 0%Retirement 39% 51% 56% 52% 31%Unsolicitedoffer 0% 0% 0% 0% 4%Other 7% 3% 0% 0% 15%
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#1MotivationforBuyer
0%10%20%30%40%50%60%70%80%90%100%
<500K 500K- 1M 1M- 2M 2M- 5M 5M- 50MBuyingajob 53% 54% 38% 20% 8%BetterROIthanotherinvestment 10% 8% 19% 24% 19%Verticaladd-on 8% 13% 13% 20% 15%Horizontaladd-on 18% 21% 19% 24% 42%Other 10% 5% 13% 12% 15%
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FinancingStructure
0%10%20%30%40%50%60%70%80%90%100%
<500K 500K- 1M 1M- 2M 2M- 5M 5M- 50MBuyersequity 62% 40% 35% 36% 36%
Seniordebt 22% 45% 50% 33% 41%
Sellerfinancing 12% 11% 12% 18% 13%
Earnout 1% 3% 3% 12% 4%
Sellerretained equity 0% 0% 0% 1% 6%
Other 2% 0% 0% 0% 0%
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II-I BusinessTransactionsValuedunder$499,999
NumberofClosedTransactions:112
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TimetoClose
0%
5%
10%
15%
20%
25%
30%
35%
40%
45%
50%
<1month
1month
2months
3months
4months
5months
6months
7months
8months
9months
10months
11months
12months
1.1-1.5years
1.6- 2years
>2years
Dealsunder500K 1% 5% 19% 17% 4% 7% 14% 4% 4% 4% 5% 1% 7% 6% 1% 1%
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Industry
0%
5%
10%
15%
20%
25%
30%
35%
40%
45%
50%
Restaurants Services-personal
Businessservices
Consumergoods& Retail
Healthcare&biotech
Wholesale&distribution
Manufact. Construction&engineering
Informationtechnology
Other
Dealsunder500K 24% 19% 13% 11% 9% 7% 3% 2% 2% 11%
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SDEMultiplePaid
Numberof responses:103
0%
5%
10%
15%
20%
25%
30%
35%
40%
45%
50%
0.5 0.75 1 1.25 1.5 1.75 2 2.25 2.5 2.75 3 3.25 3.75 4 5 8.25Dealsunder 500K 1% 1% 9% 6% 4% 8% 24% 18% 8% 7% 8% 1% 1% 2% 1% 2%
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EBITDAMultiplePaid
Numberof responses:8
0%
5%
10%
15%
20%
25%
30%
35%
40%
45%
50%
1.25 1.5 1.75 2 3 3.75 4Dealsunder 500K 13% 13% 13% 13% 25% 13% 13%
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MultipleType
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
SDEincluding workingcapital
SDEnotincludingworkingcapital
EBITDAincludingworkingcapital
EBITDAnotincludingworkingcapital
TTMEBITDAincludingworkingcapital
Dealsunder 500K 22.3% 69.6% 1.8% 5.4% 1%
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BuyerType
57.0%23.4%
18.7%
0.9% 1sttimeindividual
individualwhoownedabusiness
existingcompany/strategicbuyer
Other
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#1Reason forSeller to Go to Market
0%
5%
10%
15%
20%
25%
30%
35%
40%
45%
50%
Retirement Burnt out New/betteropportunity
Relocation/moving
Familyissues Health Recapitalization
Other
Dealsunder 500K 39% 21% 14% 7% 6% 6% 1% 7%
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BuyerLocation(Distance)
0%
5%
10%
15%
20%
25%
30%
35%
40%
45%
50%
within 20miles within 50miles within 100miles morethan100milesDealsunder 500K 54% 15% 9% 21%
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BuyerLocation(Global)
0%
5%
10%
15%
20%
25%
30%
35%
40%
45%
50%
within city within state within country international buyerDealsunder 500K 47% 28% 21% 4%
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#1MotivationforBuyer
0%
5%
10%
15%
20%
25%
30%
35%
40%
45%
50%
Buyingajob Horizontal add-on Verticaladd-on Better ROIthanotherinvestment
Other
Dealsunder 500K 53% 18% 8% 10% 10%
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FinancingStructure
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
Buyersequity Seniordebt Sellerfinancing Earnout OtherDealsunder 500K 62% 22% 12% 1% 2%
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II-II BusinessTransactionsValuedfrom$500,000to$999,999
NumberofClosedTransactions:41
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TimetoClose
0%
5%
10%
15%
20%
25%
30%
35%
40%
45%
50%
2months 3months 4months 5months 6months 7months 8months 10months 12months 1.1- 1.5years
>2years
Dealsfrom$500Kto$1M 7% 12% 22% 7% 15% 10% 2% 5% 7% 5% 7%
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Industry
0%
5%
10%
15%
20%
25%
30%
35%
40%
45%
50%
Services-personal
Wholesale&distribution
Restaurants Businessservices
Construction&engineering
Healthcare&biotech
Consumergoods& Retail
Basicmaterials&energy
Manufact. Other
Dealsunder500K 15% 15% 12% 10% 10% 10% 7% 5% 2% 15%
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SDEMultiplePaid
Numberof responses:30
0%
5%
10%
15%
20%
25%
30%
35%
40%
45%
50%
1.25 1.75 2 2.25 2.5 2.75 3 3.25 3.5 3.75 4 4.5 5Dealsfrom$500Kto$1M 3% 13% 20% 7% 13% 7% 7% 7% 3% 3% 3% 7% 7%
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EBITDAMultiplePaid
Numberof responses:11
0%
5%
10%
15%
20%
25%
30%
35%
40%
45%
50%
1 2.25 2.75 3 3.25 3.75 4Dealsfrom$500Kto$1M 18% 18% 9% 9% 9% 18% 18%
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MultipleType
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
SDEincluding workingcapital
SDEnotincludingworkingcapital
EBITDAincludingworkingcapital
EBITDAnotincludingworkingcapital
TTMEBITDAnotincluding working
capitalDealsfrom$500Kto$1M 9.8% 63.4% 12.2% 12.2% 2.4%
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BuyerType
48.7%
28.2%
23.1%
1sttimeindividual
individualwhoownedabusiness
existingcompany/strategicbuyer
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#1Reason forSeller to Go to Market
0%
5%
10%
15%
20%
25%
30%
35%
40%
45%
50%
Retirement Familyissues New/betteropportunity
Burnt out Health Recapitalization Other
Dealsfrom$500Kto$1M 51% 15% 13% 8% 5% 5% 3%
44
BuyerLocation(Distance)
0%
5%
10%
15%
20%
25%
30%
35%
40%
45%
50%
within 20miles within 50miles within 100miles morethan100milesDealsfrom$500Kto$1M 33% 33% 13% 21%
45
BuyerLocation(Global)
0%
5%
10%
15%
20%
25%
30%
35%
40%
45%
50%
within city within state within countryDealsfrom$500Kto$1M 31% 46% 23%
46
#1MotivationforBuyer
0%
5%
10%
15%
20%
25%
30%
35%
40%
45%
50%
Buyingajob Horizontal add-on Verticaladd-on Better ROIthanotherinvestment
Other
Dealsfrom$500Kto$1M 54% 21% 13% 8% 5%
47
FinancingStructure
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
Seniordebt Buyersequity Sellerfinancing EarnoutDealsfrom$500Kto$1M 45% 40% 11% 3%
48
II-III BusinessTransactionsValuedfrom$1Millionto$1.99Million
NumberofClosedTransactions:35
49
TimetoClose
0%
5%
10%
15%
20%
25%
30%
35%
40%
45%
50%
3months 4months 5months 6months 7months 8months 9months 10months
11months
12months
1.1- 1.5years
1.6- 2years
>2years
Dealsfrom$1Mto$2M 17% 3% 11% 11% 6% 3% 6% 3% 3% 9% 14% 9% 6%
50
Industry
0%
5%
10%
15%
20%
25%
30%
35%
40%
45%
50%
Businessservices
Manufact. Consumergoods&Retail
Construction&
engineering
Wholesale&distribution
Healthcare&biotech
Services-personal
Informationtechnology
Services-financial
Basicmaterials&energy
Restaurants Other
Dealsfrom$1Mto$2M 17% 14% 14% 9% 6% 6% 6% 6% 3% 3% 3% 14%
51
SDEMultiplePaid
Numberof responses:22
0%
5%
10%
15%
20%
25%
30%
35%
40%
45%
50%
1 2.5 2.75 3 3.25 3.5 4 5 6Dealsfrom$1Mto$2M 5% 9% 14% 32% 18% 5% 5% 9% 5%
52
EBITDAMultiplePaid
Numberof responses:13
0%
5%
10%
15%
20%
25%
30%
35%
40%
45%
50%
1 1.25 2 2.75 3 3.5 3.75 4 4.25 4.5 8.25Dealsfrom$1Mto$2M 8% 8% 8% 8% 15% 15% 8% 8% 8% 8% 8%
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MultipleType
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
SDEincluding workingcapital
SDEnotincludingworkingcapital
EBITDAincludingworkingcapital
EBITDAnotincludingworkingcapital
TTMEBITDAincludingworkingcapital
Dealsfrom$1Mto$2M 34% 29% 9% 26% 3%
54
BuyerType
44%
34%
19%
3.1% 1sttimeindividual
individualwhoownedabusiness
existingcompany/strategicbuyer
Other
55
#1Reason forSeller to Go to Market
0%
5%
10%
15%
20%
25%
30%
35%
40%
45%
50%
Retirement New/betteropportunity
Burnt out Health Familyissues
Dealsfrom$1Mto$2M 56% 19% 9% 6% 9%
56
BuyerLocation(Distance)
0%
5%
10%
15%
20%
25%
30%
35%
40%
45%
50%
within 20miles within 50miles within 100miles morethan100milesDealsfrom$1Mto$2M 34% 22% 3% 41%
57
BuyerLocation(Global)
0%
5%
10%
15%
20%
25%
30%
35%
40%
45%
50%
within city within state within country international buyerDealsfrom$1Mto$2M 34% 34% 28% 3%
58
#1MotivationforBuyer
0%
5%
10%
15%
20%
25%
30%
35%
40%
45%
50%
Buyingajob Horizontal add-on Better ROIthanotherinvestment
Verticaladd-on Other
Dealsfrom$1Mto$2M 38% 19% 19% 13% 13%
59
FinancingStructure
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
Seniordebt Buyersequity Sellerfinancing EarnoutDealsfrom$1Mto$2M 50% 35% 12% 3%
60
II-IV BusinessTransactionsValuedfrom$2Millionto$4.99Million
NumberofClosedTransactions:25
61
TimetoClose
0%
5%
10%
15%
20%
25%
30%
35%
40%
45%
50%
2months 3months 4months 5months 6months 7months 9months 10months 12months 1.1- 1.5years
>2years
Dealsfrom$2Mto$5M 4% 4% 16% 4% 16% 4% 4% 8% 8% 16% 16%
62
Industry
0%
5%
10%
15%
20%
25%
30%
35%
40%
45%
50%
Manufact. Construction&engineering
Wholesale&distribution
Healthcare&biotech
Services-personal
Basicmaterials&energy
Informationtechnology
Business services Consumer goods&Retail
Dealsfrom$2Mto$5M 24% 24% 16% 8% 8% 8% 4% 4% 4%
63
SDEMultiplePaid
Numberof responses:10
0%
5%
10%
15%
20%
25%
30%
35%
40%
45%
50%
1.75 2.5 2.75 3 3.5 3.75 4 5.75Dealsfrom$2Mto$5M 10% 10% 10% 20% 10% 20% 10% 10%
64
EBITDAMultiplePaid
Numberof responses:15
0%
5%
10%
15%
20%
25%
30%
35%
40%
45%
50%
2 2.25 3.25 3.5 4 4.25 4.5 5.5 6 8Dealsfrom$2Mto$5M 7% 7% 13% 13% 13% 20% 7% 7% 7% 7%
65
MultipleType
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
SDEincludingworkingcapital
SDEnotincludingworkingcapital
EBITDAincludingworkingcapital
EBITDAnotincluding working
capital
TTMEBITDAincluding working
capital
TTMEBITDAnotincluding working
capitalDealsfrom$2Mto$5M 12.0% 28.0% 32.0% 16.0% 8% 4.0%
66
BuyerType
20.0%
24.0%36.0%
16.0%4.0%
1sttimeindividual
individualwhoownedabusiness
existingcompany/strategicbuyer
PEfirm- Platform
PEfirm- Add-on
67
#1Reason forSeller to Go to Market
0%
5%
10%
15%
20%
25%
30%
35%
40%
45%
50%
Retirement Burnt out New/betteropportunity
Health Familyissues Relocation/moving
Dealsfrom$2Mto$5M 52% 20% 16% 4% 4% 4%
68
BuyerLocation(Distance)
0%
5%
10%
15%
20%
25%
30%
35%
40%
45%
50%
within 20miles within 50miles morethan100milesDealsfrom$2Mto$5M 24% 28% 48%
69
BuyerLocation(Global)
0%
5%
10%
15%
20%
25%
30%
35%
40%
45%
50%
within city within state within countryDealsfrom$2Mto$5M 20% 40% 40%
70
#1MotivationforBuyer
0%
5%
10%
15%
20%
25%
30%
35%
40%
45%
50%
Better ROIthanotherinvestment
Horizontal add-on Verticaladd-on Buyingajob Other
Dealsfrom$2Mto$5M 24% 24% 20% 20% 12%
71
FinancingStructure
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
Buyersequity Seniordebt Sellerfinancing Earnout Sellerretained equityDealsfrom$2Mto$5M 36% 33% 18% 12% 1%
72
II-V BusinessTransactionsValuedOver$5 Million
NumberofClosedTransactions:26
73
TimetoClose
0%
5%
10%
15%
20%
25%
30%
35%
40%
45%
50%
2months 3months 4months 5months 6months 7months 9months 10months
11months
12months
1.1- 1.5years
1.6- 2years
>2years
Dealsfrom$5Mto$50M 4% 8% 8% 8% 15% 8% 8% 12% 4% 4% 12% 8% 4%
74
Industry
0%
5%
10%
15%
20%
25%
30%
35%
40%
45%
50%
Manufact. Businessservices
Wholesale&distribution
Services-financial
Consumer goods&Retail
Informationtechnology
Construction&engineering
Healthcare&biotech
Other
Dealsfrom$5Mto$50M 35% 15% 15% 8% 8% 8% 4% 4% 4%
75
SDEMultiplePaid
0%
5%
10%
15%
20%
25%
30%
35%
40%
45%
50%
4 5Dealsfrom$5Mto$50M 50% 50%
76
EBITDAMultiplePaid
0%
5%
10%
15%
20%
25%
30%
35%
40%
45%
50%
1 3 3.5 3.75 4 4.25 4.5 4.75 5 5.5 6 6.25 6.5 6.75 7.5 8.5Dealsfrom$5Mto$50M 4% 4% 4% 4% 4% 4% 8% 13% 8% 4% 13% 8% 8% 4% 4% 4%
77
MultipleType
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
SDEincludingworkingcapital
SDEnotincludingworkingcapital
EBITDAincludingworkingcapital
EBITDAnotincluding working
capital
TTMEBITDAincluding working
capital
TTMEBITDAnotincluding working
capitalDealsfrom$5Mto$50M 4% 4% 31% 42% 15% 4%
78
BuyerType
3.8%
38%
38.5%
12%8%
1sttimeindividual
existingcompany/strategicbuyer
PEfirm- Platform
PEfirm- Add-on
Other
79
#1Reason forSeller to Go to Market
0%
5%
10%
15%
20%
25%
30%
35%
40%
45%
50%
Retirement Recapitalization New/betteropportunity
Health Burnt out Familyissues Other
Dealsfrom$5Mto$50M 31% 27% 8% 8% 4% 4% 15%
80
BuyerLocation(Distance)
0%
5%
10%
15%
20%
25%
30%
35%
40%
45%
50%
within 20miles within 50miles within 100miles morethan100milesDealsfrom$5Mto$50M 12% 15% 15% 58%
81
BuyerLocation (Global)
0%
5%
10%
15%
20%
25%
30%
35%
40%
45%
50%
within state within country international buyerDealsfrom$5Mto$50M 27% 65% 8%
82
#1MotivationforBuyer
0%
5%
10%
15%
20%
25%
30%
35%
40%
45%
50%
Horizontal add-on Better ROIthanotherinvestment
Verticaladd-on Buyingajob Other
Dealsfrom$5Mto$50M 42% 19% 15% 8% 15%
83
FinancingStructure
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
Seniordebt Buyersequity Sellerfinancing Sellerretained equity EarnoutDealsfrom$5Mto$50M 41% 36% 13% 6% 4%
84
IV. Expectations
85
Expectationsof Business Listings /Engagementsfrom New Clients intheNext3Months
Dealsize Greatlydecrease Decrease Staythe
same Increase Greatlyincrease
Score(1to5)
Dealsvaluedunder$499,999 0.0% 5.1% 33.8% 56.6% 4.4% 3.6
Dealsvaluedfrom$500,000to$999,999 0.0% 4.2% 27.7% 63.9% 4.2% 3.7
Dealsvaluedfrom$1million to$1.99million 0.0% 3.4% 36.1% 55.5% 5.0% 3.6
Dealsvaluedfrom$2million to$4.99million 0.0% 3.2% 39.4% 52.1% 5.3% 3.6
Dealsover$5million 1.1% 5.3% 36.8% 53.7% 3.2% 3.5
86
ExpectationsforBusinessValuationMultiples intheNext3Months
Dealsize Greatlydecrease Decrease Staythe
same Increase Greatlyincrease Score(1to5)
Dealsvaluedunder$499,999 0.0% 8.8% 73.7% 17.5% 0.0% 3.1
Dealsvaluedfrom$500,000to$999,999 0.8% 5.9% 72.3% 21.0% 0.0% 3.1
Dealsvaluedfrom$1million to$1.99million 0.8% 6.7% 68.9% 22.7% 0.8% 3.2
Dealsvaluedfrom$2million to$4.99million 1.0% 6.2% 68.0% 21.6% 3.1% 3.2
Dealsover$5million 0.0% 10.3% 58.8% 30.9% 0.0% 3.2
87
V.AbouttheRespondents
88
DetailsAbouttheRespondentsGeographicLocation
01-23-56-78-1011-1516-20more than 20
CA#
OR#
WA#
MT# ND# MN#
ID#WY#
SD#
NV#UT#
AZ#
CO#
NM#
TX#
NE#
KS#
OK# AR#
LA#MS# AL#
FL#
GA#
TN#SC#
NC#
VA#WV#KY#MO#
IL#IA#
WI#MI#
IN#OH#
MD#
PA#NJ#
NY#
ME#
NH#VT#MA#RI#
CT#
HI#AK#
89
Totalnumberofresponses=249*Numberismorethannumberofrespondents asmanyrespondentsoverlapinto2or3areas
DetailsAbouttheRespondentsTypicalSizeofBusinessTransactions
0%10%20%30%40%50%60%70%80%90%100%
Dealsvaluedunder$499,999
Dealsvaluedfrom$500,000to$999,999
Dealsvaluedfrom$1million to$1.99million
Dealsvaluedfrom$2million to$4.99million
Dealsvaluedfrom$5million to$50million
Wholesample 50% 44% 43% 33% 34%
90
DetailsAbouttheRespondentsMemberships/MultipleMemberships
49%
35%
11%
8%
7%
5%
4%
4%
4%
3%
3%
3%
3%
2%
2%
2%
1%
1%
1%
13%
0% 10% 20% 30% 40% 50% 60%
IBBA
M&ASource
CaliforniaAssociationofBusiness Brokers
AllianceofMerger&AcquisitionsAdvisors
Business BrokersofFlorida
TexasAssociationofBusiness Brokers
NewEnglandBusinessBrokersAssociation
Carolina- VirginiaBusinessBrokersAssociation
OhioBusiness BrokersAssociation
ColoradoAssociationof Business Intermediaries
ArizonaBusinessBrokersAssociation
MidwestBusinessBrokersIntermediaries
PennsylvaniaBusinessBrokersAssociation
FloridaBusinessBrokersAssociation
GeorgiaAssociationofBusinessBrokers
MichiganBusinessBrokersAssociation
NewYorkAssociationofBusinessBrokers
Mid-AtlanticBusinessBrokersAssociation
NevadaBusinessBrokersAssociation
Other(pleasespecify)
91
DetailsAbouttheRespondentsWorkingExperience
3% 6% 5%
3%3%
4%
4%4%
3%4%
9%21%
8%
22%
Lessthan1year1year2years3years4years5years6years7years8years9years10years11-15years16-20years>20years
92
DetailsAbouttheRespondentsProfessionalCredentials
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
CBI MBA CBB M&AMI CMEA CM&AA CPA(nonactive)
CPA(active)
ABI BCB AM&AA BCI CFA ASA CMSBB Other(pleasespecify)
% 44% 27% 13% 13% 6% 5% 4% 4% 3% 3% 3% 2% 2% 2% 1% 24%
93
THANK YOU!
Scott Bushkie, CBI, M&AMI, IBBA Marketing [email protected]
Lisa Riley, Ph.D., CBI, IBBA Marketing [email protected]
Craig Everett, Ph.D. Director, Pepperdine Private Capital Markets Project
http://bschool.pepperdine.edu/[email protected]