We looked at 584 SMB acquisitions across 12 quarters. Here are some of the key insights:

1️⃣ Pricing reset: average TTM multiples slid to 3.3x, a 12-quarter low, while the spread between TTM and 3y avg. purchase multiples has trended down since Q4-2022 (see chart below)

2️⃣ Ask vs. close spread widened: on average, deals closed 10.5% below asking and brokered processes took an average of ~313 days

3️⃣ Stability vs. earnings peaks: companies with steady earnings saw a +0.4x premium

4️⃣ Size remains less impactful than expected at the lower end of the market: companies with revenue >$5M fetched +0.3x vs. less than $5mm

5️⃣ Working capital: NWC at close typically runs 10–20% of purchase price (and peaked in Q2)

There are a lot of buyers out there, but it seems like the "Silver Tsunami" has yet to peak.