Summer 2024 M&A Update
Middle market M&A activity remained depressed in the first quarter of 2024, although pricing multiples did show signs of improvement relative to 2023 pricing data. The slow start to 2024 was a continuation of the prior year trend - M&A activity declined precipitously in the first quarter of 2023, and total deal value and volume remained muted through the remainder of the year. While the economy has proven to be resilient, posting real GDP growth of 2.5% in 2023 (up from 2022’s growth of 1.9%), and the prospect of rate cuts by the Fed looms on the horizon, there has been no real improvement in deal activity in the past four quarters. This is somewhat surprising against the backdrop of an economy performing reasonably well and the amounts of capital held by private equity funds and strategic buyers. While deal activity remained sideways in the first quarter of 2024, we believe that these factors could lead to more robust deal activity through the balance of 2024.
Also in This Issue
U.S. Deal Value & Volume
EBITDA Multiples
EBITDA Multiples by Buyer Type
U.S. Deal Volume by Industry
Debt Multiples
Number of Deals by Buyer Type