BayState Business Brokers is a proud member of Axial’s deal platform for the lower and middle market.
Their recent report provided an update on buyer trends and the buyer landscape for the lower middle market (under $10.0+ million in EBITDA).
Five Key Takeaways:
- The number of buyers on Axial’s platform has increased significantly, with dramatic growth of buyers in all three recent years with 2025 setting a record.
- Diversity of buyers
Historically private equity and independent sponsors represented the majority of buyers completing deals on Axial’s platform. Not only is the number of buyers growing, but the diversity of buyers is as well, which is especially appealing to BayState Business Brokers and our sellers to reach a broad group of qualified buyers including family offices, individual investors and holding companies. - There is significant interest among the buyers across EBITDA ranges including the smaller end of $0.5M to $1M and $3M-$5M, with the highest interest being in the $1M – $3M EBITDA range. BayState Business Brokers typically sells companies with up to $5M in EBITDA and have many clients with companies in the $1-3M EBITDA range, making Axial a great resource for buyers for these listings.
- Industrials is a hot sector.
Industrials remain the sector where buyer interest and deal activity rank #1 for both, indicating the appeal of industrial businesses which tend to represent durable and essential businesses. BayState recently sold an HVAC company in a record 35 days from LOI to close, with a private equity buyer who found our listing on Axial’s platform. - Business Services presents an opportunity.
Buyer demand is outpacing deal activity for business services indicating this sector has high interest among buyers who likely also have a high urgency to acquire. This presents a competitive situation and could lure owners of business services business who may be thinking now is the time to sell.
To read the full report, click here.
To discuss buying or selling, please contact us. We welcome the opportunity to help you achieve your goals.
