Middle Market M&A Trends: Five Key Takeaways for Private Equity and Independent Sponsors
November 2, 2025 |
Corporate Blog
Top five (5) highlights for private equity and independent sponsors from the latest Middle Market Growth Magazine:
1. 45% of all deals are sub $25 million of enterprise value (EV) - nice size for smaller platforms or add-on acquisitions (page 28)
2. Multiples averaging 5.6x to 5.7x adj EBITDA for sub $10m EV deals, and 6.2x to 6.7x for $10m to $25m EV deals (page 28)
3. 53% of deal volume occurring in the Midwest and Southeast (page 26)
4. Buyers can win deals by (1) proving value in every conversation (page 8), and (2) optimal deal structuring (ie, rollover equity/tax mitigation for all parties, including Qualified Small Business Stock).
5. Increasing use of sell-side Quality of Earnings reports to support seller valuation, and increase speed to deal close.
John Koeppel's Commentary on Middle Market Growth Fall 2025 edition, October 14, 2025.
1. 45% of all deals are sub $25 million of enterprise value (EV) - nice size for smaller platforms or add-on acquisitions (page 28)
2. Multiples averaging 5.6x to 5.7x adj EBITDA for sub $10m EV deals, and 6.2x to 6.7x for $10m to $25m EV deals (page 28)
3. 53% of deal volume occurring in the Midwest and Southeast (page 26)
4. Buyers can win deals by (1) proving value in every conversation (page 8), and (2) optimal deal structuring (ie, rollover equity/tax mitigation for all parties, including Qualified Small Business Stock).
5. Increasing use of sell-side Quality of Earnings reports to support seller valuation, and increase speed to deal close.
John Koeppel's Commentary on Middle Market Growth Fall 2025 edition, October 14, 2025.
Disclaimer: The information in this post is provided for general informational purposes only, and may not reflect the current law in your jurisdiction. No information contained in this post should be construed as legal advice from our firm or the individual author, nor is it intended to be a substitute for legal counsel on any subject matter. No reader of this post should act or refrain from acting on the basis of any information included in, or accessible through, this post without seeking the appropriate legal or other professional advice on the particular facts and circumstances at issue from a lawyer licensed in the recipient’s state, country or other appropriate licensing jurisdiction.
Stay Informed
Related Team
Related Content
Corporate Blog
EBITDA Addbacks in M&A: What Buyers Need to Know Before Closing
March 16, 2026
Corporate Blog
Private Equity Value Creation: The Drivers That Separate Top Quartile Deals
March 1, 2026
Corporate Blog
Independent Sponsor Deals: Why Direct Deal Investing Is Growing at 52.8% CAGR
February 26, 2026
Press Releases
Lippes Mathias Team Advises Family Office Enceladus Partners in Embarq Creative Investment
February 26, 2026
TAGS
LOWER-MIDDLE-MARKET SUCCESS TIPS TIPS PRIVATE EQUITY INDEPENDENT SPONSOR
PRACTICE TEAMS
INDEPENDENT SPONSOR PRIVATE EQUITY
