Falling Interest Rates: Why Now May Be the Window to Maximize Your Business Sale

October 7, 2025 · Blog Posts

Vallexa Advisors blog post on how falling interest rates increase business valuations and create opportunities for sellers

Falling Interest Rates: Why Now May Be the Window to Maximize Your Business Sale

For business owners, timing a sale is one of the most critical decisions. Move too early, and you may leave value on the table. Wait too long, and you risk missing the peak.

With the Federal Reserve cutting interest rates — and signaling more to come — the M&A landscape has shifted in sellers’ favor. At Vallexa Advisors, we help business owners seize these rare windows.

How Interest Rates Impact Valuations

When borrowing costs drop, buyers can finance acquisitions more easily and stretch for higher purchase prices.

  • Lower Cost of Capital → Higher Multiples
  • Higher Cost of Capital → Compressed Valuations

Even a one-point swing in rates can add millions to deal financing costs. For owners, that translates into significant differences at the closing table.

Case Study: Healthcare Services Valuations

  • Q3 2022: A healthcare staffing company with $1.4M EBITDA sold for 8.4×, achieving a $12M exit.
  • Q2 2025: A similar company with the same EBITDA sold for just 4.0×, less than half the value.

The difference? The financing environment. Strong fundamentals matter, but the rate backdrop can double or halve your outcome.

Why This Moment Matters

  • Cheaper Debt → More aggressive buyer pricing
  • Private Equity Dry Powder → Record capital waiting to be deployed
  • Pent-Up Seller Supply → Many owners delayed in 2023–24, meaning competition will surge in 2026–27

Owners who prepare now will be positioned ahead of that wave.

The Vallexa Advantage

At Vallexa Advisors, we specialize in helping healthcare and service-based business owners turn timing into opportunity. Our disciplined process ensures you attract multiple bidders — not just one.

Q4 2025 – Q2 2026 is an ideal preparation and go-to-market window. Acting now allows you to:

  • Clean up financials and positioning
  • Engage serious buyers before supply floods the market
  • Capture premium valuations while financing conditions are favorable

Don’t Wait Until It’s Crowded

History shows the best outcomes come to those who anticipate — not those who react when the market feels “hot.” By then, competition is fierce, and leverage shifts back to buyers.

Take the Next Step

If you’re considering a sale in the next 12–24 months, now is the time to prepare. Vallexa Advisors will guide you through valuation, positioning, and a competitive process designed to maximize your outcome.

👉 Contact Vallexa Advisors today for a confidential consultation. The window is opening — let’s make sure you’re ready to step through it.

Seller FAQs: Falling Rates and Your Exit

How do lower interest rates increase valuations?
Lower borrowing costs let buyers use more debt and still hit return targets. That flexibility supports higher purchase prices and expands EBITDA multiples.
Should I wait for more rate cuts before I sell?
You can, but waiting invites more competition as other owners rush to market. Early preparation often captures better leverage and cleaner processes.
Do SBA buyers benefit too?
Yes. SBA pricing follows prime. Each cut reduces financing costs and can expand what qualified buyers can pay.
What timeline do you recommend?
Q4 2025: preparation and positioning. Q1–Q2 2026: outreach and management meetings. Q3–Q4 2026: closing, assuming a typical 6–9 month process.
What if my financials are messy?
We help you clean and normalize financials, document add-backs, and build a credible story before buyers see the data.
Which sellers does Vallexa Advisors serve?
Healthcare and service businesses across home health, hospice, home care, DME, and adjacent services. We also support select service verticals with recurring revenue.
How long does a sale take?
Most processes run 6–9 months from launch to close. Preparation makes the difference in speed and outcome.
What multiples are you seeing?
Multiples vary by size, quality, and growth. As rates ease, floors tend to lift. Strong companies with durable cash flow, diversified customers, and clean books command premiums.
How do we start a confidential conversation?
Contact Vallexa Advisors for a private consultation. We will discuss timing, valuation, and the best path to market without alerting staff or customers.

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