SBIA Releases New Edition of Lower Middle Market Insights

Data Show Strong Revenue and Employment Growth

WASHINGTON, D.C. (March 23, 2018) – The Small Business Investor Alliance (SBIA), the leading association for lower middle market private equity funds and investors, today released the first issue of this year’s Lower Middle Market Investment Insights, a semiannual publication that includes the most recent market intelligence on lower middle market company mergers and acquisitions (M&A) deal trends.

Featured in the Lower Middle Market Investment Insights is the most up-to-date intelligence on private company mergers and acquisitions (M&A) deal trends from GF Data®, the leading middle market M&A data provider. This report also showcases the latest senior executive sentiment from a quarterly assessment by the SBIA/National Center for the Middle Market (NCMM) Confidence Index.

As shown in the Lower Middle Market Investment Insights, 2017 was one of the strongest years of employment growth. In the latest quarter, lower middle market businesses experienced a growth rate of 5.4%. The employment growth rate among S&P 500 companies averaged 2.6%. Lower middle market revenue growth is still strong at 7.4%, again outperforming the S&P 500, and confidence remains high. GF Data found that middle market valuations surged in the second half of 2017 to a record average of 7.8x Trailing Twelve Months (TTM) Adjusted EBITDA. Overall valuations for the year averaged 7.4x and surpassed the record high posted in 2016 in a data set that goes back to 2003.

“SBIA’S Lower Middle Market Investment Insights provides valuable reporting that helps inform our members of the unique changes taking place in the market and how they can address the opportunities present in the data,” said Brett Palmer, President of the SBIA.

Access Volume 5, Issue 1 of Lower Middle Market Investment Insights here. ###

 

About the Small Business Investor Alliance (SBIA)

The Small Business Investor Alliance (SBIA) is the premier organization of lower middle market private equity funds and investors. SBIA works on behalf of its members as a tireless advocate for policies that promote competitive markets and robust domestic investment for growing small businesses. SBIA has been playing a pivotal role in promoting the growth and vitality of the private equity industry for over 50 years. For more information, visit www.SBIA.org or call (202) 628-5055.

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