GF Data

While middle-market leverage ratios have recalibrated since 2021, the market remains disciplined for PE-backed acquisitions through 2025 and 2026.

Middle-market private equity firms often overlook critical technology due diligence in sub-$100 million deals, creating significant operational risks for high-growth acquisitions.

The middle market data provider tracks over 5,700 private equity-backed transactions to offer anonymized benchmarks on valuations and deal terms for M&A professionals.

New data reveals a shift in private equity valuation premiums between high-performing and standard-performing companies across the middle market.

Data shared at ACG’s DealMAX conference shows a 23% decline in middle-market private equity deal activity as valuation multiples hold steady at 7.2x.

Latest data on middle-market private equity transactions indicates a period of continued volatility and mixed signals for M&A activity heading into the next fiscal year.

The private equity business model is facing challenges due to higher valuations, lower target internal rates of return (IRRs), and fund vehicles with prescribed lives dictating investment hold periods.