Market Data – Category Posts from The Forbes M+A Group. Research via our Knowledge Base and get access to M&A articles, news, and other info.

M&A and Capital Markets Update 2Q 2019

In 2Q 2019, overall middle market M&A activity continued at a slower clip compared to 2018’s record breaking pace.

Despite slightly depressed deal volume, Middle Market M&A multiples remained elevated in North America at 7.6x EV/EBITDA, as low costs allowed for larger deals to be completed.

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M&A and Capital Markets Update Summer 2019

In Q1 2019, U.S. equity markets rebounded, increasing almost 14% as fears that drove down markets in Q4 2018 and warned of a slowdown, were eased

The Federal Reserve held interest rates steady amid continued inflation rates below 2%. The European Central Bank (“ECB”) also announced a delay in rate hikes.

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M&A and Capital Markets Update Q4 2018

Despite a pullback in public markets at the end of Q4, M&A activity remained strong in 2018, finishing the year with the second-highest total deal value on record.

The average EV / EBITDA multiple across North America and Europe rose to 7.2x driven by increased competition and an abundance of undeployed capital.

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M&A and Capital Markets Update Q3 2018

Q3-18_Forbes-Market-Update-1Despite transaction volume slowing (still nearly 15,000 deals completed to date), M&A deal value continues to stay on pace with recent
years as Q3 marks the second consecutive quarter with over $800 billion in value for North America and Europe combined.

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M&A and Capital Markets Update Q2 2018

market-capital-reportM&A ACTIVITY SAW A SLIGHT INCREASE IN Q2 OF 2018, LARGELY DUE TO FIVE $10 BILLION+ MEGA-DEALS BEING COMPLETED.

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2018: Another Robust Year for M&A

notizie-news3The M&A outlook for the rest of 2018 looks bright after yet another hot start in Q1. Deloitte recently published its annual M&A outlook report based on data collected from 1000+ corporate executives and private equity professionals. Respondents foresee an acceleration of mergers and acquisitions (M&A) activity in 2018, both in the number of deals and the size of the transactions. Technology acquisition is the new No. 1 driver of M&A pursuits and dealmakers report using non-spreadsheet based M&A technology tools to help reduce conflicts, costs, and time.

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Market Data Trends & Highlights – Fall 2016

 The slowdown in M&A activity has been neither as deep nor as prolonged as general industry reports would suggest. After a quiet 1Q16, completed deal volume and TEV/EBITDA multiples increased in 2Q16, from 46 to 58 and 6.6x to 6.8x respectively.

Quarter-to-quarter shifts in valuation over the past two and a half years have not been material. Read more

Market Data Trends & Highlights – Fall 2016

cover-market-data-report-fall-2016

The slowdown in M&A activity has been neither as deep nor as prolonged as general industry reports would suggest. After a quiet 1Q16, completed deal volume and TEV/EBITDA multiples increased in 2Q16, from 46 to 58 and 6.6x to 6.8x respectively.

Quarter-to-quarter shifts in valuation over the past two and a half years have not been material. In addition, the “size” premium— the spread between valuations on $10-50M and $50-250M TEV transactions—has been remarkably steady. The spread of 2.2x (an average of 5.8x on the smaller deals and 8.1x on the larger ones) in the first six months of 2016 is exactly in line with the spread in 2014-15. While the market has been relatively stable in equity values, there has been more movement over time in debt levels. Total debt to EBITDA averaged in the “mid-threes” for several years before rising to 3.9x.

Download Market Report Here: Market Report Fall 2016.

Market Data Trends & Highlights – April 2016

April_ImageCompleted transaction activity picked up in the fourth quarter, after a notably fallow 3Q. Data from over 200 private equity groups and other deal sponsors reported 62 completed 4Q transactions of $10-250 million TEV and TEV/Adjusted EBITDA multiples of 3-15x. This is markedly ahead of 39 closed deals in 3Q, and nearly on par with 65 in the fourth quarter of 2014. While deal volume increased in the fourth quarter, the average valuation dipped to 6.5x.

Annual data has a way of smoothing out blips in the interim periods. In the end, 2015 looked a lot like 2014. Completed deal volume: 218 in 2015 compared to 211 in ’14. Overall valuation multiples: 6.7x in both years. However, a closer look at the data reveals a number of shifts that may or may not be signs of age in this “seller’s market.”

Download Market Report Here: Market Report Spring 2016.

Market Multiples and Trends – December 2015

November 2015 CoverThrough the first six months of 2015, middle market data from over 200 financial sponsors outlines current valuations in what can be described as a ripe “seller’s market.” Compared to a year ago, transaction volume in the first 6-months of the year is up modestly. However, this total fell short of predictions cast by a number of analysts on Wall Street; market conditions seemed to suggest that a record number of business owners would pursue a sale due to market multiples and seller leverage. The third quarter of 2015 represented more of the same for private middle market M&A – or less of the same, depending on what you are looking at. Valuations for the third quarter of 2015 averaged 7.1x, the highest quarterly mark in 13 years.

Buyers continue to pay a premium for larger businesses, which is consistent with historical data. In addition to this ‘size premium’, buyers identified additional key value drivers that they look for when evaluating a potential acquisition. These include: (1) institutional ownership prior to sale, as opposed to individual/family owned enterprises, (2) above-average financial characteristics, and (3) management remaining post-close. Each of these factors individually influenced overall valuation of the company. So, what does that mean? According to private deal data collected by GF Data Resources LLC, on average, a company that meets each of these 3 criteria was valued at 8.4x Adj. EBITDA.

Download full PDF Report Here: Market Report 2015