BOSTON, April 3, 2025 /PRNewswire/ -- Capstone Partners, a leading middle market investment banking firm, released its 2024 Middle Market M&A Valuations Index, reporting that middle market M&A activity in 2024 showed signs of stabilization after facing valuation pressure in 2023. While equity markets largely shrugged off the rapid interest rate hikes last year, dealmaking remained constrained by high financing costs, uncertain cash flow projections, and a cautious private equity buyer pool. As a result, average middle market M&A valuations declined to 9.4x EV/EBITDA in 2024, compared to 9.6x in 2023 and 9.9x in 2022. The median EBITDA multiple also dropped for the fifth consecutive year, reflecting a continued narrowing pool of competitive bids. Despite this challenging valuation environment, several industries demonstrated resilience. Agriculture, Business Services, Consumer, Energy, Financial Technology & Services, Healthcare, and Industrial Technology sectors saw year-over-year (YOY) improvements in average EBITDA purchase multiples, suggesting selective strength in certain sectors.
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