Lower Middle Market Buyer Landscape Update - June 2025

The podcast offers an overview of the lower-middle-market M&A landscape, highlighting significant shifts in buyer types and deal dynamics. One source, an article from Axial, emphasizes the increasing diversity of buyers beyond traditional private equity and corporations, noting the rise of independent sponsors, family offices, and search funds, particularly for businesses with EBITDA between $ 1 million and $3 million. The second source, focusing on M&A trends for 2024-2025, corroborates the diversification of buyers and provides detailed insights into sector-specific deal activity and valuation trends, while also offering strategic recommendations for sellers to maximize their company's value. Both sources collectively paint a picture of a dynamic and evolving market, where understanding buyer motivations and preparing thoroughly are crucial for successful transactions.