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The quarterly IBBA and M&A Source Market Pulse Survey was created to gain an accurate understanding of the market conditions for businesses being sold in Main Street (values $0-$2MM) and the lower middle market (values $2MM -$50MM). The national survey was conducted with the intent of providing a valuable resource to business owners and their advisors. The IBBA and M&A Source present the Market Pulse Survey.
The Q1 2022 survey was conducted April 1-15, 2022 and was completed by 360 business brokers and M&A advisors. Respondents completed 317 transactions this quarter. This is the 40th edition – marking 10 years of the Market Pulse Survey.
Market Headwinds
The M&A market faced headwinds over the last several months as global conflict and rising inflation may have caused some buyers to reevaluate their deal strategy. Talent and supply chain issues remain persistent concerns.
Advisors say that labor shortages have had the biggest impact on deal-making in Q1 2022. Sixty-eight percent (68%) say it’s had a dampening effect on Main Street and lower middle market M&A. And of those, 5% say it’s actually caused deal terminations.
More than half of advisors (58%) say supply chain issues are having a negative impact on the market and 15% say the Russia-Ukraine conflict has hurt deal activity.
Meanwhile most advisors (76%) believe a recession is at least somewhat likely in the next 12 months, with 25% predicting it’s either “very likely” or “extremely likely.”
Please download the entire report (above) to read more.
About the Market Pulse Report
The Market Pulse Report compares conditions for businesses being sold on Main Street (values of $0-$2MM) to those being sold on the Lower Middle Market (values of $2MM-$50MM). The Q1 2022 survey was conducted April 1-15, 2022 and was completed by 360 business brokers and M&A advisors. Respondents completed 317 transactions this quarter. This is the 40th edition – marking 10 years of the Market Pulse Survey.
About International Business Brokers Association (IBBA) and the M&A Source Founded in 1983, IBBA is the largest non-profit association specifically formed to meet the needs of people and firms engaged in various aspects of business brokerage and mergers and acquisitions. The IBBA is a trade association of business brokers providing education, conferences, professional designations and networking opportunities. For more information about IBBA, visit the website at www.ibba.org or follow the IBBA on Facebook, Twitter and LinkedIn.
Founded in 1991, the M&A Source promotes professional development of merger and acquisition professionals so that they may better serve their clients’ needs and maximize public awareness of professional intermediary services available for middle market merger and acquisition transactions. For more information about the M&A Source visit www.masource.org, or follow the M&A Source on Facebook, LinkedIn and Twitter.
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