Buyers and sellers face widening valuation gaps and tighter credit
Updated
Updated · CBIZ · May 4
Buyers and sellers face widening valuation gaps and tighter credit
9 articles · Updated · CBIZ · May 4
In Q1 2026, CBIZ said deal activity remained steady but fewer transactions closed as Middle East instability, inflation concerns and AI scrutiny, especially in software, made decision-making more cautious.
Lenders have widened spreads, tightened leverage and structure, and become more selective, making refinancing less certain for assets bought at 2021 peak valuations and pushing capital toward heavy-asset, lower-obsolescence businesses.
The report says middle-market add-on deals, capital deployment and fundraising continue, but tighter credit could force private equity sponsors to accept lower valuations and help reset pricing discipline across the market.
Is the AI-driven 'SaaS-pocalypse' a market panic or the permanent end of software's high-growth investment era?
With private credit defaults hitting record highs, is the industry's 'shadow banking' halo about to shatter for good?