GF Data: Premiums Narrow, But Quality Still Gets a Look in H1
Above-average financial performers still command higher multiples despite a steady decline in valuation premiums, according to H1 '25 data from GF Data
Recent data from GF Data, an ACG company, reveals a steady decline in valuation premiums for companies with above-average financial performance (AAFPs) in buyouts. Even so, these AAFPs still command higher multiples than their peers.
GF Data defines above-average financial performance as businesses with trailing 12-month EBITDA margins and revenue growth rates both above 10%, or one above 12% and the other metric at least 8%. Outliers on the high side are excluded.
According to the data, AAFP valuation premiums have declined steadily since 2023. Yet the incidence of AAFPs climbed in 2025’s first half, inching closer to long-term averages after a decline in AAFP volume in 2023 and 2024.
Buyers are remaining conservative as market uncertainty persists. GF Data analysis suggests this conservatism is likely muting how much sponsors are willing to pay for quality targets.
While acquirers are staying selective, strong financial performers continue to earn a premium—just not as high of a premium as before.
Want to explore the data further or benchmark your next transaction? Subscribe to GF Data to gain access to the full platform, including valuation metrics, leverage trends, key deal terms, and more. Visit gfdata.com to schedule a demo.
Middle Market Growth is produced by the Association for Corporate Growth. To learn more about the organization and how to become a member, visit acg.org.
