M&A Quarterly Newsletter – December 2025
by Taureau Group
Market Summary
- Average purchase price multiples rebounded to 7.5x TTM Adjusted EBITDA in 3Q 2025, up from 6.9x in 2Q 2025, reversing the sharp decline seen earlier in the year.
- Valuations on companies with TEV between $10 million and $25 million averaged of 6.4x in 3Q 2025, up from 6.1x in 2Q 2025.
- The industries showing the highest EBITDA multiples in 3Q 2025 were media & telecom at 8.6x and healthcare services at 8.5x.
- Notable, EBITDA multiples for all manufacturing companies averaged 6.7x in 3Q 2025, compared to the 6.6x average in the first half of 2025, the slight uptick in part driven by renewed buyer interest in discretionary assets.
- Add-ons accounted for 39% of buyouts through 3Q, down slightly from 41% through the first half of 2025, as sponsors remained focused on executing roll-up strategies within existing portfolios.
- On a rolling four-quarter basis, average total debt was 3.8x in 3Q 2025, down slightly from 3.9x in 2Q, while senior debt remained stable at 3.2x.
- Average total debt among manufacturing platform deals increased to 3.2x in 3Q 2025, compared to 3.1x in 2Q 2025.
What’s New at Taureau Group
- September – Completed the acquisition of key assets of Strawbees for RW Thrive, through its subsidiary BirdBrain Technologies.
- September – Completed the sale of M2M Machining, Inc., a portfolio company of Generation Growth Capital, Inc., to BTS5 Incorporated.
- September – Completed the acquisition of EMS Industrial & Service Company for an affiliate of Dielectric Manufacturing and Centerline Machine.
- September – Engaged by steel products manufacturer for consideration of potential sale.
- September – Nick Mydlach attended PACK EXPO, North America’s largest trade show for the packaging and processing industries.
- November – Completed the sale of Trutron Corporation to Compass Precision, LLC, a portfolio company of Main Street Capital Holdings, LLC.
- November – Taureau Group was featured in Digital Reference’s list of top M&A consulting experts
- November – Ann Hanna was presented with The Taureau Group Award by BizStarts, established to annually celebrate a board member or volunteer whose passion, drive, and contributions have strengthened the BizStarts mission. Learn more here.
- December – Engaged by specialty contractor for consideration of potential sale.
- December – Corey Vanderpoel participated on a panel discussing Wisconsin’s data center industry at the WEDA December Academy webinar.
Valuations for high-quality companies held strong in 3Q, demonstrating resilience even as buyers showed increased discipline prioritizing scale and financing capacity.
Active Broad Acquisition Searches
- ESOP client looking to make acquisitions of educational services, and CTE products and software companies with revenues between $5 million – $20 million.
- Acquisition opportunities for a private equity platform company looking for providers of multi-site facility services in commercial end markets with revenues of $15+ million.
- Acquisition opportunities for a private equity platform company looking for contract manufacturing companies specializing in medical devices with revenues of $5+ million.
- Acquisition opportunities for a private equity platform company looking for aerospace, defense and space exploration components manufacturers with revenues between $5 million – $30 million.
- Acquisition opportunities for an employee-owned company looking for advanced fabrication and VDC services; modular systems and data centers with revenues between $25 million – $100 million.
- Acquisition opportunities for a private equity platform company looking for work-holding products manufacturers and machine tool accessories companies with revenues between $1 million – $50 million.
- Acquisition opportunities for a private equity platform company looking for manufacturers with plastic injection molding, machining, or fabrication capabilities with revenues between $5 million – $15 million.
- Public company looking for branded consumer outdoor recreation companies with revenues between $5 million – $100 million.
- Private company looking for product-based manufacturers in robust end markets with revenues between $1 million – $10 million.
Featured Insights
- Beyond the Multiple: Deconstructing Earnings in Unique Economic Times – Read the article here.
- Unlocking Value Through Strategic Capital Solutions – Read the article here.
Market Statistics
Total Enterprise Value (TEV)/EBITDA*
| TEV | ’03-20 | ’21 | ’22 | ’23 | ’24 | YTD’25 | Total |
|---|---|---|---|---|---|---|---|
| 10-25 | 5.8 | 6.1 | 6.4 | 5.9 | 6.4 | 6.4 | 5.9 |
| 25-50 | 6.5 | 7.2 | 7.1 | 6.9 | 6.8 | 6.8 | 6.7 |
| 50-100 | 7.5 | 8.3 | 8.5 | 8.1 | 8.1 | 8.3 | 7.7 |
| 100-250 | 8.3 | 9.3 | 9.2 | 9.5 | 8.5 | 10.3 | 8.6 |
| Total | 6.7 | 7.6 | 7.6 | 7.2 | 7.2 | 7.3 | 6.9 |
TEV/EBITDA—By Industry ($10-$250M TEV)*
| Industry | ’03-20 | ’21 | ’22 | ’23 | ’24 | YTD’25 | Total |
|---|---|---|---|---|---|---|---|
| Manufacturing | 6.2 | 7.2 | 7.4 | 6.5 | 7.0 | 6.7 | 6.4 |
| Business services | 6.7 | 7.3 | 7.4 | 7.2 | 7.2 | 7.5 | 7.0 |
| Health care services | 7.4 | 8.1 | 8.4 | 8.9 | 7.7 | 8.5 | 7.7 |
| Retail | 7.0 | 8.4 | 8.0 | 6.0 | 7.4 | 7.6 | 7.1 |
| Distribution | 6.7 | 7.2 | 7.1 | 7.1 | 6.9 | 7.2 | 6.8 |
| Media & Telecom | 7.6 | 7.0 | 8.3 | 7.8 | 6.7 | 8.6 | 7.6 |
| Technology | 8.4 | 10.3 | 8.1 | 10.2 | 7.9 | 6.7 | 8.6 |
| Other | 6.3 | 7.3 | 7.0 | 6.9 | 7.0 | 6.9 | 6.5 |
Senior Debt/EBITDA—Splits by Period (platforms only)*
| TEV | 4Q23 | 1Q24 | 2Q24 | 3Q24 | 4Q24 | 1Q25 | 2Q25 | 3Q25 |
|---|---|---|---|---|---|---|---|---|
| 10-25 | 2.1 | 2.3 | 1.7 | 1.8 | 1.6 | 2.0 | 1.3 | 1.2 |
| 25-50 | 3.0 | 1.9 | 2.0 | 2.4 | 2.4 | 2.6 | 1.8 | 1.2 |
| 50-100 | 2.1 | 2.5 | 2.6 | 3.1 | 2.7 | 2.7 | 2.2 | 2.3 |
| 100-250 | 3.4 | 3.0 | 2.8 | 2.8 | 3.8 | 3.8 | 3.9 | 2.6 |
| Total | 2.7 | 2.2 | 2.3 | 2.7 | 2.8 | 2.7 | 2.0 | 2.1 |
*Source: GF Data®. Information included from GF Data may not be used or re-published without permission from GF Data or Taureau Group.