Great for the buyers and sellers but bad for the clients of those firms. Growth by acquisition causes suffering to the employees and clients of those merger and acquisition mongers. Mike
Posting average multiples is not all that useful since there are so many variables that affect valuations. Overall, the transaction multiples are up 20-30% from where they were 3+ years ago. While the multiples may hold due to so much pent up capital, valuations themselves could drop. In my opinion, there is a very high possibility of a near-term recession as happens frequently when the US changes presidents. As we saw 10 years ago, a recession causes a loss of business (i.e. revenue) which then reduces equity.
Great for the buyers and sellers but bad for the clients of those firms. Growth by acquisition causes suffering to the employees and clients of those merger and acquisition mongers. Mike
Since the title says current state of valuations it would have been nice to address that in the content (eg price/rev).
I, also, was hopeful that the article included content on valuations (multiples by size of company, etc.).
Posting average multiples is not all that useful since there are so many variables that affect valuations. Overall, the transaction multiples are up 20-30% from where they were 3+ years ago. While the multiples may hold due to so much pent up capital, valuations themselves could drop. In my opinion, there is a very high possibility of a near-term recession as happens frequently when the US changes presidents. As we saw 10 years ago, a recession causes a loss of business (i.e. revenue) which then reduces equity.
https://agencybrokerage.net/2015/05/02/now-is-the-time-to-sell-your-independent-insurance-agency/