Our Transactions
Some of the recent transactions completed by Beacon as an exclusive agent:
Despite a challenging macroeconomic environment and rigid credit market conditions,
the average transactional parameters of our 2011 deals were as follows:
- Average Selling Price (as % of Asking Price): 94%
- Average Selling Price/Revenue Multiple: 0.41
- Average Selling Price/EBITDA Multiple: 3.62
- Average Time on Market (Months): 6.75
Some of our notable 2011 observations
- Majority of transactions financed by equity
- Trading multiples increased slightly compared to 2010
- Stable, cash-flow positive businesses trading at a premium as investors are still risk-averse
- Vendor financing is still a preferred financing option
- Consolidation trends in a number of industries
- Predominantly buyer’s market at the beginning of the year is moving towards an equilibrium
What to expect in 2012
- Increase in the number of larger deals as capital markets continue to improve
- Partial return of risk appetite among investors
- Continued industry consolidation in certain areas
- Fairly balanced buyer-seller’s market
- Cash will still be king
- Continued trend of retirement being the main reason for sale of a business