In 4Q19, overall M&A activity and deal value increased.
4Q19 U.S. Middle Market M&A multiples softened to 7.1x EV/EBITDA, as low borrowing costs allowed for larger deals to be completed.
Private equity funds continued to close as a result of a rise in mega-funds. Fundraising grew to $191B through 3Q19, increasing the likelihood of 2019 fundraising to surpass 2018’s total.
Private equity continued to see a rise in mega-funds and fundraising grew $110B in 4Q19 to reach an all-time high of $301B.
While overall cash balances of S&P 500 companies decreased in 4Q19, they were still near record levels, providing for continued strategic acquisitions.
To download full report: M&A Capital Market Update Q4 2019