Business prices: Partial recovery

GF Data Resources, Philadelphia, says it tracked 33 sales of businesses at prices in the $10 million - $250 million range in the three months ended Sept. 30, making it the busiest quarter since the market collapsed in late 2007, but still not up to the 50/quarter pace of late 2006-early 2007.

Prices are back up to 6X past earnings (before interest, taxes, depreciation, amortization), up from around 5X for the previous year. Debt levels of sold companies are also higher, a sign that mediocre businesses are getting sold again, after a period in which only the best properties found buyers, according to GF co-owner B. Graeme Frazier 4th.

Some (not most) sales were based on "tax motivations," fears Congress won't extend the Bush-era tax credits for rich people, GF co-owner Andy Greenberg says.

Winter deal flow is typically weaker than the rest of the year, and "we are hearing from the most-active private equity groups and investment banks that they're not seeing a lot of new product right now," he added. He's projecting a fuller recovery late next year.