Axial Releases the Top 25 Lower Middle Market Investment Banks for Q3 2022
NEW YORK, October 20, 2022 (Newswire.com) - Axial, the online M&A platform for buyers, advisors, and sellers of small and medium-sized businesses, has released its Q3 2022 Lower Middle Market Investment Banking League Tables. Despite rising inflation and the looming threat of an economic recession, there is light at the end of the tunnel as signaled by growing employment, decreased oil prices and ongoing improvement in consumer spending. And nowhere is this clearer than in the lower middle market, which continues to see robust deal flow despite slightly relaxed growth in Q3.
"Coming off of a record-breaking Q2 for the sell-side and six quarters of consistent growth, it came as no surprise that lower middle market deal flow remained fairly flat in the third quarter," says Peter Lehrman, founder and CEO of Axial. "But the quality of deals on Axial rose notably in Q3, with the average deal revenue up $12 million from last quarter and the average EBITDA up $1.5 million. Congratulations to Q3's Top 25 lower middle market investment banks for their strong results during this period."
Investment banks took more than 680 deals to market via Axial in Q3, representing a 19.6% increase in year-over-year deal flow. Average deal revenue reached $33.7 million in the quarter with average EBITDA of $5.3 million. Within the Axial platform, the industrial sectors accounted for 33.6% of all deal activity in Q3, followed by Technology at 13.4%, Consumer Goods at 10.8%, Healthcare at 10.6% and Business Services at 9%. Transportation companies accounted for 8.1% of total deal flow, followed by Food & Hospitality at 6.4%, Energy & Renewables at 2.6% and Financial Services at 1.9%.
"Lower middle market deals in Energy & Renewables jumped ahead in Q3 with a pursuit rate of nearly 14%, indicating strong buyer interest in the sector," says Kristina Mayne, Director of Marketing at Axial. "Pursuit activity overall in the quarter nearly reached the highs we saw in Q1, suggesting that lower middle market dealmakers are well positioned for a strong finish to 2022."
Axial is the online M&A platform for buyers and sellers of American small and medium-sized businesses. The company's pioneering deal sourcing and deal marketing platforms are trusted by professional acquirers, top lower middle market M&A advisors, and transaction-ready business owners. A select list of Axial clients and transactions sourced and executed via the Axial platform can be found here. For more information on Axial, visit www.axial.net.