The median quarterly middle market public company revenue and EBITDA multiples peaked in March 2021. Since then, the revenue and EBITDA multiples have been declining. As a result, EBITDA multiples have declined 9% over the last 12 months. However, since the beginning of 2023, EBITDA multiples have hovered around 8.0x. With rising rates and inflation, it is not surprising that there is a contraction in multiples. We also believe that multiples are projecting lower earnings going forward. If earnings continue to remain strong, we anticipate a reversal of this decline. That said, if the economy does fall into a recession and earnings suffer, then this trend should continue.

Read the Full Report