M&A Insights – Mark Young, Managing Partner, CKS Advisors

Welcome to the September 2019 edition of M&A Insights. Our goal at CKS Advisors is to help you stay up-to-date on the Merger and Acquisitions climate.

This month, we highlight Pepperdine University’s Q2 2019 Market Pulse Report. The Report focuses on sales of companies in the lower middle market with values between $5M – $50M. Topics covered include transaction information and market sentiments and trends.

Key Points:

  • Purchase price multiples averaged 5.9x for companies valued between $5M-$50M, matching Q2 2018’s historically elevated multiples.
  • Sellers are receiving more cash at closing: 94% of the purchase price in Q2 2019, compared to 80% in Q2 2018.
  • For the first time, the most active sector for acquisitions was Construction and Engineering in Q2 2019.

Our Two Takeaways:

  • Purchase price multiples, although plateaued, remain at historically elevated levels
  • The Mergers and Acquisitions market remained strong in Q2 2019 after market peak concerns were raised in Q1 2019.

If you would like to learn more about the M&A market or are ready to take the next step to explore your options, we would be glad to meet. Please contact me at 480-351-8533 or