IBBA/M&A Source Market Pulse results 4Q 2021

Here are the latest 4 quarter averages, based on the 4Q20-3Q21 IBBA/M&A Source Market Pulse results.  They are good at helping explain what is market/average/standard. The results definitely shift as transaction sizes get larger, but for the most part, in the <$2M size, the average seller finance amount is 10%, 81% of the transactions do NOT include working capital (AR/AP) in the price, and 84% of the transactions use SDE as the main multiple metric.   

% of Seller Finance of Total Consideration by Deal Size

Seller Finance 4Q20- 3Q21 Avg
Valuation SizeSFEarnoutTotal
<$500k11314
$500k – $1 mm 9210
$1 mm – $2 mm9312
$2 mm – $5 mm8210
$5 mm – $50 mm6511
<$2 million10212

% of Transactions where Working Capital (AR/AP) was Included or Excluded as Part of the Price by Deal Size
Working Capital Included:  4Q20- 3Q21 Avg

Valuation SizeIncl %Excl %
<$500k1783
$500k – $1 mm 1783
$1 mm – $2 mm3070
$2 mm – $5 mm3862
$5 mm – $50 mm8021
<$2 million2179

% of Transactions that Used SDE vs. EBITDA as the Main Multiple Metric

SDE v EBITDA4Q20- 3Q21 Avg
Valuation SizeSDEEBITDA
<$500k929
$500k – $1 mm 8614
$1 mm – $2 mm7525
$2 mm – $5 mm6238
$5 mm – $50 mm2179
<$2 million8416


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