Peakview Partners recently completed an analysis of our closed sell-side advisory transactions over the last three years. These transactions encompassed a broad cross-section of industries, including healthcare, technology, manufacturing, distribution, energy, consumer and business services.

Below please find a few interesting takeaways:

• 17 Transactions
• Average Transaction Size: $32 million
• Range (Competitive Process): $12-$120 million
• Buyer Profile:
  • 9 Strategics 
  • 4 Private Equity Platforms
  • 4 Strategics backed by Private Equity
• Average EBITDA Multiple: 7.8x
• Noteworthy: Approximately one-third of the deals were completed by negotiating with a single buyer (at the client’s request), as opposed to conducting a competitive auction process with multiple potential buyers:
  • Average EBITDA Multiple for Single Buyer Transaction: 6.2x
  • Average EBITDA Multiple for Competitive Auction Transaction: 8.7x
    • Implied Competitive Auction Premium: 41% 

The most compelling takeaway for sellers is to run a competitive process. We often hear from potential clients that they “know who the buyer is.” Well, maybe that’s true, but engaging Peakview to run our distinct style of competitive auction process is likely to result in a higher valuation. 

Please let us know if you have an opportunity to discuss.