SME deals slow dramatically, and valuation multiples drop

BVWire–UKIssue #42-1
September 6, 2022

BVR’s latest DealStats Value Index (DVI), which reports deal values primarily for small and medium enterprises, confirms a significant reduction in business value for the quarter ending 30 June 2022. DVI reports EBITDA multiples are at 2.9x, which is down from the 4.5x rate in the first quarter of 2022. The DVI calculates valuation multiples and profit margins from closely held companies each quarter, as shown in the chart below. The index always reports lower multiples than other sources, which report on transactions financed by private equity or listed company only. The chart also highlights the median selling price/EBITDA with the trailing three-quarter average over a five-year period.


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