Valuations Normalizing After Years of Elevation

In transactions ranging from $10 million to $250 million, we are seeing multiple compression compared to the previous quarter. Valuations are now tracking close to long-term averages after several years of elevated levels.

Alongside valuation pressure, senior debt multiples have contracted to an average of 2.0x EBITDA on platform transactions — the lowest since COVID. Bankers are signaling caution as inflation once again shows signs of life in the U.S., tightening their risk tolerance. According to GF Data, deal activity in the first half of 2025 is down 30% from 2024, underscoring a more selective environment for buyers and lenders alike.