redactedDoes a lower-middle-market M&A deal really close every day in Canada? Canada's lower-middle-market — companies with $10 million to $50 million in revenue — is a vibrant hub of mergers and acquisitions activity, and industry observers note that a transaction in this segment closes daily across the country. Analysis of M&A data from 1999 to 2024 supports the claim and offers valuable insights for business owners and advisors. The data behind the claim — from March 1999 to September 2024, Canada likely recorded 50,000 to 80,000 total M&A transactions, averaging 2,000 to 3,100 deals a year. The lower-middle-market is an estimated 20% to 30% of that activity — 13,000 to 19,500 deals, or 510 to 765 a year, equal to 1.4 to 2.1 deals per day. Reference points include a record 3,512 transactions in 2017, 815 deals in Q1 2023, and 1,715 foreign acquisitions of Canadian firms in 2018. What drives the daily pace - Strong valuation multiples — across 79 Canadian deals ($10M-$50M revenue, $1M-$5M EBITDA), the median MVIC/EBITDA was 8.8x and MVIC/Net Sales 1.05x, with cannabis retail (13.2x) and technology (18.3x) commanding premiums - Diverse sector activity — cannabis retail, technology (a $27.1M IoT deal at 18.3x EBITDA), transportation and healthcare sustain deal volume - Global interest — 1,715 inbound foreign deals in 2018, drawn by Canada's economic stability and resources - An expert advisory ecosystem — accountants, lawyers, tax, wealth and, most critically, M&A intermediaries keep deals closing efficiently What it means - For owners — with about 12% median EBITDA margins and strong multiples, selling now can maximize value, while delay risks missing peak valuations - For advisors — valuing intangibles (e.g., $23.8M goodwill in a healthcare deal) demands specialized expertise, and the 8.8x EBITDA benchmark helps guide clients Caveats — downturnsredacted, 2020) likely fell below one deal per day, offset by peaks like 2017; unreported private deals add uncertainty but likely raise the true count. Key facts: daily lower-middle-market M&A in Canada About 50,000 to 80,000 total Canadian M&A deals since 1999; lower-middle-market averages ~1.4 to 2.1 per day Median multiples (79 deals): 8.8x MVIC/EBITDA and 1.05x MVIC/Net Sales; ~12% median EBITDA margin Premium sectors: cannabis retail (13.2x) and technology (up to 18.3x EBITDA) Strong, resilient deal flow makes timing and expert M&A advice critical If this content was useful, the rest of the Selling Your Canadian Business library is one click away. Visit redacted for a monthly newsletter, audio podcast, and video interviews with Canadian advisors. Subscribe now to The Canadian Exit Briefing for exclusive articles, guides and reports written for Canadian business owners and their advisors. Pass this article along to another owner who is working through the same questions. Disclaimer: This article is for general informational purposes only and does not constitute legal, tax or financial advice. Consult qualified advisors regarding your specific circumstances. redacted