Axial Releases the Top 25 Lower Middle Market Investment Banks for Q2 2022

Axial

Axial, the online M&A platform connecting buyers and sellers of American small and medium-sized businesses, has released its Q2 2022 Lower Middle Market Investment Banking League Tables. Despite the economic uncertainty facing the market so far in 2022 - including a formal correction in public equity markets, sustained soaring inflation, and a looming recession - the lower middle market remained robust in Q2, setting fresh highs for dealflow and valuations.

Access the Q2 2022 Lower Middle Market Investment Banking League Tables

"The trend toward increased lower middle market activity that we've been watching since last year is still holding up despite the macro picture," says Peter Lehrman, founder and CEO of Axial. "New deals going to market via Axial in 2022 are flat to up relative to a blistering 2021 pace, which is great to see. Buyers are definitely taking longer to close deals, and we're seeing slightly elevated LOI breakage rates, but the market remains really robust."

Investment banks took more than 2,700 deals to market via Axial in Q2, representing a 43% increase in year-over-year dealflow and 35% sequential quarterly growth. Average deal revenue reached $21.8M in the quarter, up from $20.1M in Q1. Average EBITDA was $3.8M. Within the Axial platform, the Industrial sectors accounted for 21.2% of all deal activity on Axial in Q2, followed by Consumer Goods at 16.2%, Technology at 16.1%, Healthcare at 14.8% and Business Services at 8%. Food & Hospitality and Transportation followed with just over 7% of total dealflow, along with Financial Services at 2.5% and Energy & Renewables at 2%.

"We saw a pursuit rate of over 12% in the Transportation sector, 400 basis points in excess of overall platform averages. Based on that data, expect to see an uptick in Transportation deal closures in 2H 2022," says Kristina Mayne, Director of Marketing at Axial. "That held true across several other industries as well, as buy-side M&A interest jumped significantly in Q2. We're seeing robust signed LOI activity despite the interest rates and recession narratives. Lower middle market acquirers and investment banks should be able to post a strong second half of their year." 

About Axial

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 buyers, top lower middle market M&A advisors, and transaction-ready business owners. A select list of transactions sourced and executed via the Axial platform can be found here. For more information on Axial, visit www.axial.com.

###

For media inquiries, contact: 
Kristina Mayne, Director of Marketing
Axial | kristina.mayne@axial.net