Q1 2026 Lower Middle Market M&A Report + New Website Launch
April 19, 2026
by an intermediary from Howard University - School of Business in Denver, CO, USA
Two updates for independent sponsors actively deploying capital in 2026.
📊 RKJ Partners has published its Q1 2026 Lower Middle Market M&A Market Overview. A few standout findings:
• The LMM has stabilized — capital is available, seller motivation is rising, and the bid-ask gap that froze deals through mid-2025 has narrowed
• Platform acquisitions grew for the fifth consecutive quarter — strong signal for add-on demand
• Average EBITDA multiples: 6.8x (typical) · 9.8x (premium) — quality bifurcation is real
• Private credit dominates — direct lenders actively competing for $10M–$75M EBITDA credits
• Hottest sectors: Business Services · Specialty Healthcare · Tech-Enabled Services · Home Services
The bottom line: sponsors with proprietary sourcing pipelines are winning. Those relying on brokered deal flow are competing in the most crowded part of the market.
📄 Full report: https://drive.google.com/file/d/18YKGdtafXaYziCOM0feR4tt3tUE62UFm/view?usp=drive_link
🌐 We've also launched our new website at www.rkjpartners.com — a full overview of our buy-side advisory capabilities and proprietary sourcing process.
Feel free to connect or reach out directly to discuss your acquisition strategy.
#LowerMiddleMarket #IndependentSponsors #PrivateEquity #MergersAndAcquisitions #BuySideAdvisory #RKJPartners