The Q3-2025 Market Report is here, and the data reveals a market that continues to reward scale, performance, and operational excellence.

According to the latest middle-market data, average purchase price multiples increased to 7.5x LTM EBITDA, one of the strongest levels seen in the last two years (see valuation table on page 4 of the report). Deal flow remains healthy, with private equity completing an estimated 2,347 U.S. deals in Q3, a ~12% increase over Q3 last year (page 3). Despite fewer reported closings quarter-over-quarter, valuations strengthened as leveraged recaps and growth financings drove premium pricing.

On the capital markets front, senior debt pricing continued to ease, holding in the low-to-mid 8% range, while subordinated debt remained stable in the 11–12% range (page 7). Combined with over $1.0T in PE dry powder and more than $750B nearing the end of its investment window (page 8), competitive bidding is expected to remain elevated into 2026.

Key Takeaways from Q3:

Valuations strengthened: Multiples rebounded to 7.5x despite fewer reported closings.

Market competition remains high: Buyers continue to pursue high-quality, well-run companies.

Debt markets support activity: Senior debt costs continue to trend downward.

PE pressure to deploy: Elevated dry powder is expected to drive additional deal volume in the coming quarters.

If you’re considering strategic options for your company in 2026, now is the time to engage. Our team is actively advising founders, CEOs, and investors on market timing, valuations, and capitalization strategies.