The Alliance of Merger & Acquisition Advisors reported a median EBITDA multiple of 5.25 for closed deals (sales, purchases, or recaps) in 2012, based on a survey of its members. This price represents the middle transaction price for lower middle market companies sold in 2012…typically those valued between $1 million and $25 million. According to the same survey of its members, AM&AA reported that 88% of its members deals were valued between 3x and 8.5x EBITDA. EBITDA is earnings before interest, taxes, depreciation and amortization, and is typically reported as an “adjusted” figure, based on generally accepted, normalizing adjustments.
Malt & Company is a member of the AM&AA, and Mr. Malt is a Certified Merger & Acquisition Advisor (CM&AA) through the AM&AA.