Following up on our post from a couple of weeks ago regarding the acquisition of SRS Distribution by Home Depot, we provide a brief update on private M&A markets in this week’s post.
Although middle market transaction activity remained depressed in the fourth quarter of 2023 compared to 2022, M&A activity and multiples improved a bit compared to recent quarters. Possible Fed rate cuts, a resilient economy despite 525bps of Fed rate hikes, and ample dry powder held by PE firms to deploy may be the catalysts for a stronger rebound in 2024.