M&A Quarterly Newsletter – September 2025
by Taureau Group
Market Summary
- Average purchase price multiples fell to 6.8x TTM Adjusted EBITDA in 2Q 2025, down sharply from 7.6x in 1Q 2025, albeit representing more of a timing anomaly versus any broad market trend.
- Valuations on companies with TEV between $10 million and $25 million averaged of 6.1x in 2Q 2025, down from 6.7x in 1Q 2025.
- The industries showing the highest EBITDA multiples in 2Q 2025 were health care services at 8.3x and retail at 7.8x. EBITDA multiples for all manufacturing companies averaged 6.5x in the first half of 2025, compared to the 7.0x average in 2024.
- Notable, through 2Q 2025 multiples on manufacturing branded consumer and business products averaged 6.7x while manufacturing unbranded products averaged 5.6x.
- Add-ons continued to play a central role in sustaining deal activity, accounting for 40% of buyouts tracked year to date, well above the prior record of 35% recorded in 2023..
- Total debt averaged 4.0x TTM EBITDA in the first half of 2025, down from 4.1x in 1Q but up from the 3.7x average in 2024.
- Average total debt among manufacturing platform deals increased to 3.1x in 2Q 2025, compared to 2.8x in 1Q 2025.
What’s New at Taureau Group
- June – Engaged by metal stamping manufacturer for consideration of potential sale.
- June – Engaged by managed IT, consulting, and support services provider for consideration of potential sale.
- July – Hayden Wage was promoted to Associate.
- July – Christian Musbach joined the team as an Analyst.
- July – Completed the acquisition of Lyons Electric for Potawatomi Ventures.
- August – Taureau Group published its 2025 Volume I Packaging & Printing Industry Report.
- August – Nate Summy joined the team as an Analyst.
- August – Engaged by medical products distributor for consideration of potential sale.
- September – Taureau Group published its 2025 Volume II Industrials & Contract Manufacturing Industry Report.
- September – Corey Vanderpoel attended FABTECH 2025, the premier event for metal forming, fabricating, welding, and finishing.
- September – Taureau Group is recognized for the fifth year in a row at the Milwaukee Business Journal’s Best Places to Work celebration held at American Family Field.
- September – Closed three deals…to be announced shortly.
Middle-market deal volume rebounded in the second quarter, up nearly 33% from the volume reported in the first quarter; however, year-to-date activity remains behind prior-year levels due to the impacts of tariffs and other market dynamics experienced earlier in the year.
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.
Featured Insights
- 2025 Volume I Packaging & Printing Industry Report – Download the report here.
- 2025 Volume II Industrials & Contract Manufacturing Industry Report – Download the report 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 | 6.3 | 5.9 |
25-50 | 6.5 | 7.2 | 7.1 | 6.9 | 6.8 | 6.9 | 6.7 |
50-100 | 7.5 | 8.3 | 8.5 | 8.1 | 8.1 | 8.0 | 7.7 |
100-250 | 8.3 | 9.3 | 9.2 | 8.5 | 8.5 | 10.0 | 8.6 |
Total | 6.7 | 7.6 | 7.6 | 7.2 | 7.2 | 7.2 | 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 | 6.5 | 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 | 8.3 | 7.7 |
Retail | 7.0 | 8.4 | 8.0 | 6.0 | 7.4 | 7.8 | 7.1 |
Distribution | 6.7 | 7.2 | 7.1 | 7.1 | 6.9 | 7.0 | 6.8 |
Media & Telecom | 7.6 | 7.0 | 8.3 | 7.8 | 6.7 | NA | 7.5 |
Technology | 8.4 | 10.3 | 8.1 | 10.2 | 7.9 | 5.8 | 8.5 |
Other | 6.3 | 7.3 | 7.0 | 6.9 | 7.0 | 7.2 | 6.5 |
Senior Debt/EBITDA—Splits by Period (platforms only)*
TEV | 3Q23 | 4Q23 | 1Q24 | 2Q24 | 3Q24 | 4Q24 | 1Q25 | 2Q25 |
---|---|---|---|---|---|---|---|---|
10-25 | 1.1 | 2.2 | 2.3 | 1.7 | 1.8 | 1.6 | 2.0 | 1.3 |
25-50 | 2.9 | 3.0 | 1.9 | 2.0 | 2.4 | 2.4 | 2.6 | 1.8 |
50-100 | 2.3 | 2.1 | 2.5 | 2.6 | 3.1 | 2.7 | 2.7 | 2.2 |
100-250 | 3.5 | 3.4 | 3.0 | 2.8 | 2.8 | 3.8 | 3.8 | 3.9 |
Total | 2.7 | 2.7 | 2.2 | 2.3 | 2.7 | 2.8 | 2.7 | 2.0 |
*Source: GF Data®. Information included from GF Data may not be used or re-published without permission from GF Data or Taureau Group.