Private Equity interest in the middle-market remains strong, but the way investors evaluate businesses has changed significantly over the last few years.
Structurally higher financing costs than in the zero-rate decade, a congested exit market, geopolitical uncertainty, and growing pressure on portfolio performance have all reshaped buyer priorities. Growth alone is no longer enough, but the bar for growth has risen: Bain estimates that a buyout now needs roughly 10–12% annual EBITDA growth to deliver the same 2.5x return that around 5% growth delivered in the 2010s, because cheap leverage and multiple expansion can no longer be relied upon. Investors are therefore focused on resilience, scalability, visibility, and a company’s ability to continue creating value in a more demanding and rapidly changing environment.
Read moreMiddle-market M&A is a world of opportunity, and with that comes a sea of options and moving parts.
Your advisor is the compass.
Contact us for a no-commitment consultation with an M&A specialist, who’ll listen carefully to your concerns and give an honest, unbiased assessment on the best way forward.
