Median Buyout Size Is Declining—What That Means for Business Owners

According to PitchBook, private equity deal value in the U.S. dropped by nearly 20% in the first half of 2020 compared to the same period the year before. The effects of the pandemic have reshaped the private equity landscape—impacting deal structures, exit timelines, and acquisition strategies.

Instead of traditional buyouts, many PE firms are focusing on:

• Add-on acquisitions

• PIPE deals (Private Investment in Public Equity)

• Alternative capital strategies

One key trend?

The median buyout size declined in 2020 for the first time in five years.

What Does This Mean for Business Owners?

If your company is generating $1 million to $5 million in EBITDA, you may now fall within the “sweet spot” for PE buyers shifting their focus to smaller, more strategic acquisitions.

With a potential influx of demand in this range, it could be an opportune time to:

• Test the market

• Get a market assessment

• Begin exit planning discussions

Curious about acquisition activity in your industry or EBITDA range? Contact CRI M&A Advisors for a confidential market assessment.

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