BizNexus Roundup

"Technology" and Lower Middle Market purchase prices

BizNexus Episode 80

Brent Mathews' article from February 2025 discusses the impact of technology, particularly AI and readily available coding resources, on acquisition prices in the lower middle market. Mathews, drawing on fifteen years of experience in acquisition financing, observes that buyers are increasingly projecting significant revenue and EBITDA growth based on planned technology implementations. He questions whether buyers with technological expertise will inflate the prices of companies with outdated systems and lower margins. 

The article also considers how traditional "value" investors might adapt to this changing landscape. Mathews reflects on the historical challenges and unpredictability of implementing technological changes in acquired businesses.

Check out that full research here: https://www.linkedin.com/pulse/technology-lower-middle-market-purchase-prices-brent-mathews-y8wue/?trackingId=0%2BiLnzCoTdeofUT4qhflKw%3D%3D

DISCLAIMER: The BizNexus Roundup podcast features AI hosts whose analysis is based entirely on pattern recognition and reports created by actual human experts. While our hosts can process vast amounts of data, they've never actually closed a deal or sat in a boardroom.

Our discussions draw from publicly available sources and expert insights, but we strongly encourage listeners to consult the original documents and reports referenced in each episode for the complete context and analysis. The AI hosts' market predictions and deal assessments, while data-driven, are no substitute for professional human judgment and due diligence.

For actual M&A advice, please consult qualified human experts and always go to the source materials to get the full story.



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Show Credits

Intro Music Artist: DJ Freedem | Track: Pretty Boy