PitchBook Reports that Merger and Acquisition Prices Rise in First Quarter 2013
PitchBook, an information firm that specializes in tracking the activities of Private Equity Groups (PEGs) and their business acquisitions and business sales has reported the the business sales price multiples for both EBITDA and Revenues have gone up in the first quarter of 2013. The PitchBook analysts break the market into 3 price range categories, under $25 million, $25 million to $250 million, and over $250 million. Average prices of firms with revenues under $25 million purchased by PEGs is now about 5 times EBITDA and just under 1 times revenues. Click to link to the PitchBook site where you can download the report.
What this means is that business valuations and the final sales prices for profitable well run companies, what we call “working models” is rising. If you are prepared, now is a good time to take your business to market.
By, Gregory R. Caruso
Harvest Business Advisors