2024 EBITDA Multiples

December 06, 2024

by a professional from Southern Oregon University in Portland, OR, USA

Since 2022, across industries within BVR private company transactions, average EBITDA multiples have generally been trending upward, reaching a peak of 4.8x in the second quarter of 2024, before dropping to 3.2x in the third quarter of###-###-#### Seems like a significant drop. Curious if there are thoughts on why the drop and if you think the market will rebound for Q4?

Make sure you check out the individual industry sector data at https://www.searchfunder.com/bvr

Reply by an intermediary
from Wake Forest University in Winston-Salem, NC, USA

I wouldn't put too much weight on an aggregate average of a single quarter -- way too susceptible to the sample and skew. Instead, whenever we look at multiples, we look at at regression analysis of the multiples for a specific industry and appropriate size segment over time (years) to see if there is a statistically significant shift occurring in the multiple. For most industries the multiples are surprisingly consistent over 5, 10, and even 15 years. However, we always look as there are cases where they are increasing or decreasing.

Reply by a professional
from Southern Oregon University in Portland, OR, USA

^redacted‌ I couldn't seem to reply to your message but wanted to get back to you. Yes my post is what we are seeing overall in the marketplace and not with a particular threshold involved. Large and small deals for the quarter. I looked at past Q3 to Q2 and there isn't normally a drop. Thanks for your comment.

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