In a year where middle-market deal volume cooled, GF Data shows that small-deal activity remains notably resilient. Through the first half of 2025, we tracked 118 transactions in the $1 million to $25 million total enterprise value (TEV) range—compared with 142 deals in our traditional $10 million to $500 million universe.
Key takeaways:
- The “very small” end ($1 million to $5 million and $5 million to $10 million) averaged EBITDA multiples of approximately 5.5× trailing-12-month (TTM) EBITDA and 5.6× TTM EBITDA, respectively; the $10 million to $25 million tier averaged 6.2×–6.7×.
- Add-on deals continue to command a premium over new platforms. In H1 2025, add-ons in the $1 million to $5 million tier had debt coverage of 5.7× TTM EBITDA, versus 2.3× for platforms.
- Industry divergence is notable: business services dominated small-deal volume (57 of the deals), averaging a multiple of 6.2× TTM EBITDA, outpacing their long-run average of 5.8×.
- The size premium remains alive: sub-$10 million deals trade at lower multiples, while the $10 million to $25 million tier enjoys higher valuations. That nearly full turn gap persists.
What it means for owners, sponsors and advisors:
For business owners under the $25 million TEV mark, this data reinforces that they remain viable candidates for private equity interest—especially as strategic tuck-ins. Sponsors, meanwhile, should note that deployment in the small-deal space is still meaningful, but careful pricing discipline is key. The add-on strategy remains the more financed route, and platform creation at the very low end remains beset by higher equity reliance and structural cost burdens.
As interest rates stay elevated and overall deal count remains muted, the small-deal universe is showing relative strength—and opportunity. GF Data will continue to monitor how size, structure, and sector drive valuation outcomes across this less-examined segment of the middle market.
Read the deep dive in Middle Market Growth.