Axial's 2022 Lower Middle Market Pursuits Report Highlights the Market's Stability in the Face of Volatility
NEW YORK, November 17, 2022 (Newswire.com) - Axial, the online M&A platform for small business acquisitions, has released its Q3 2022 Lower Middle Market Pursuits Report. Lower middle market buyers grew more serious in the third quarter, with LOI activity beginning to reflect the top of funnel activity witnessed in the first half of 2022.
"The first half of 2022 was characterized by lots of top-of-funnel conversation and connection between buyer and seller, but much more limited LOI and closed deal activity. In Q3, buyers are ready to transact," says Peter Lehrman, founder and CEO of Axial. "Q3 LOI activity on Axial grew 52% year on year. Based on this, I do think Q4 closed deal volume could surprise a lot of market observers to the upside."
Sell-side activity on the Axial platform grew 19.6% in Q3 2022 on a year-over-year basis while on the buy-side, new mandates from prospective acquirers jumped 24% since last quarter. On an annual basis, overall buy-side activity is up 42%, marking the strongest quarterly performance since 2020. In September alone, the buy-side added 167 new mandates on the Axial platform, an increase of 8.7% in just one month.
"The data seems to be telling us that lower middle market acquirers are making serious offers but the below trend average pursuit rate reveals that they are as discerning as we've ever seen them," says Kristina Mayne, Director of Marketing at Axial. "As a result, it is taking sellers more pursuits to reach a signed letter of intent, even in sectors where pursuit rates remain elevated."
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.