Private-company EBITDA multiples down again in 1Q2023

BVWireIssue #250-1
July 12, 2023

private company transaction data
private company comps, private company financial reporting, guideline transaction method, dealstats

After a rebound in the third quarter of 2022, EBITDA multiples continue to drop. From a median of 3.8x in the third quarter of 2022, the median selling price/EBITDA dropped to 3.5x in the fourth quarter of 2022 and then to 3.0x in first quarter of 2023 (see graph below). This is according to the latest issue of the DealStats Value Index (DVI). In the period analyzed, EBITDA multiples across all industries were highest in the third quarter of 2018, at 5.0x, but then decreased until they bottomed out in the first half of 2022.




The 30-page DealStats Value Index is a quarterly publication exclusively for DealStats subscribers. It provides trend information on valuation multiples and profit margins for transactions in DealStats, including multiples and margins by industry sector, interquartile range by sector and year, multiples and margins for private vs. public, and much more. If you are a subscriber to DealStats, you can download the current issue to see all the latest transaction trends if you click here.
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