Winter 2024 M&A Update
Middle market M&A activity in the third quarter of 2024 showed signs of the “summer slowdown,” as fewer PE deals were reported compared to the first two quarters of the year. Reported multiples for PE deals also declined 0.3x TTM EBITDA from the second quarter. That being said, overall deal value and transaction volume was up quarter over quarter, with total deal value reaching its highest level since the third quarter of 2022. The economy continues to show resilience, posting real GDP growth of 2.1%. As predicted, the Fed cut interest rates by 50 basis points in September, easing monetary policy for the first time in four years. The Fed emphasized that inflation was much closer to its target of 2% and the labor market showed signs of improvement. There are continued signs that there are private equity funds and strategic buyers with disposable capital, all factors that show the market should be primed for a recovery in M&A activity leading into 2025.
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