#71 Q1 2026 Economic & M&A Update – What it means for valuations & deals

24 February 2026

Kyle walks through bizval’s Q1 2026 US M&A Report and what’s actually happening in the market – how valuations are being set, how deals are being financed, and why many owners misunderstand both. Ryan and Kyle talks about why multiples are a blunt instrument, why discounted cash flow is the real anchor, and how shifts in debt markets are changing cash-at-close outcomes. This conversation matters because owners are capital allocators, whether they realize it or not. Debt is more expensive. Buyers are structured differently. The owners who win the next five years will be the ones who understand how risk, cash flow, and valuation actually work together.

Takeaways:

  • Multiples start negotiations, but cash flow risk determines real value.
  • Discounted cash flow exposes risks that market comps ignore.
  • Bank financing is retreating – private credit is filling the gap at a cost.
  • Cash at closing should equal DCF, or the seller is still carrying risk.
  • Reinvesting capital above your cost of capital is the only way to beat debasement.

Chapters

  • (40:21) Kyle on bizval’s Q1 2026 US M&A report and valuation reality
  • (56:00) Risk, policy, and deal structures
  • (01:07:00) Debt markets are changing deal outcomes
  • (01:18:00) Multiples vs. real value
  • (01:30:00) Cost of capital beats debasement
  • (01:40:00) Treasury stability underpins valuations

bizval startup

Requirements

Less than 3 years old

Pre or post revenue

Business plan and forecasts available

Benefits

Bespoke valuation methodologies

Developed in conjunction with leading universities

Key valuation drivers unpacked

Scenario sensitivity analysis

Tech-and-touch approach

Personalized consideration and evaluation of results

Less than 10 day turn-around time

Access to bizval webinars and education sessions

bizval enterprise

Requirements

Business that provides services to other business owners

Benefits

3 valuation methodologies (DCF, EM and NAV)

Secure and confidential

Access to bizval webinars and education sessions

Priority support

Scenario sensitivity analysis

Personalized engagement and follow up

All the usual benefits with customized pricing for high-volume users

bizval exit

Requirements

Single or multiple business entity

Deep understanding of your business

Clear intention to sell or raise investment – now or in the future

Benefits

Proprietary bizval exit process and bizval exit scorecard

Includes a free concierge valuation

Less than 2 weeks from start to finish

Pesonalized engagement and follow up

Priority support

Customized deal readiness report

Heat map and recommendations to maximize valuation and ensure best chance of success

Secure and confidential

Access to bizval webinars and education sessions

Access to experienced professionals who know how to navigate the often scary world of deal making

Access to exclusive introductions to qualified investors

bizval concierge

Requirements

Single business entity

Basic business knowledge

2 years financial statements and/or management accounts

Benefits

Includes bizval exit scorecard

3 valuation methodologies (DCF, EM and NAV)

Secure and confidential

Access to bizval webinars and education sessions

Priority support

Scenario sensitivity analysis

Personalized evaluation of results

Less than 5 day turn-around time, once all information received

Quick and easy to use – Does not require detailed technical or accounting knowledge

bizval live

Requirements

Single business entity

Knowledge of key business and financial information

Benefits

Includes bizval exit scorecard

3 valuation methodologies (DCF, EM and NAV)

Secure and confidential

Access to bizval webinars and education sessions

Includes complimentary 15 min consultation

Unlimited access to Scenarios

Standard support

Access to valuation scenarios add-on

Instant valuation result

Unique bizval algorithm

Quick and easy to use – Does not require detailed technical or accounting knowledge