Valuations

The factors that compress multiples in lower middle-market transactions, and the specific actions that protect value when you need it most.

What you gather before the process starts determines how clean the output is. The complete document checklist for a lower middle-market business valuation.

Where your sector trades and what moves you above or below the midpoint. Data from lower middle-market transactions covering 10 industry sectors.

Five valuation approaches, each serving a different purpose. Understanding which one a buyer will use changes everything about how you position your business.

The real answer requires a professional process, not a formula. Here’s what actually drives value in a lower middle-market business transaction.

There is a meaningful difference between what your business is worth on paper and what a buyer will pay for it in a transaction. An accountant will tell you your book value. An appraiser will tell you a range based on financial formulas and comparable transactions. A buyer will tell you what they are willing…

A sell-side Quality of Earnings report typically costs $25,000-$50,000 and takes 4-6 weeks — but it routinely adds $500K-$2M+ to your final sale price by bulletproofing your EBITDA before buyers ever see the numbers. Here’s what the report covers, what it costs, and why only about half of lower middle market sellers commission one (and why those sellers get better deals).

SDE (Seller’s Discretionary Earnings) and EBITDA are the two metrics that determine what buyers will pay for your business. SDE applies to owner-operated businesses typically under $5M revenue; EBITDA applies to professionally managed businesses above $5M. Understanding which applies to you — and how to transition from SDE to EBITDA — can mean hundreds of thousands of dollars in additional sale price.

What is your Memphis business worth? Valuations for logistics, healthcare, food and beverage, and manufacturing companies in North America’s logistics capital.

What is your Birmingham business worth? Valuations for healthcare, manufacturing, financial services, and construction companies in Alabama’s deepest private company market.

Nashville lower middle market M&A transaction data, valuation multiples, and market trends for 2026. Compiled from completed transactions, market intelligence, and industry databases. Updated quarterly.

What is your Knoxville business worth? Valuations for healthcare, manufacturing, energy, and service companies in East Tennessee’s growing economy.