Highlights
“While sellers report strong pipelines of businesses prepping for sale in the fall, buyers continue to express concern regarding the quality and performance of target firms.”
Q2-2024 M&A Update: Mid-Year Deal Volume Declines
According to TagniFi, deal volume dropped in the trailing 12-month period for deals announced from July 1, 2023, to June 30, 2024. The platform reported 10,053 deal announcements during this period, compared to 11,597 deals in the previous year.
TagniFi tracks US-based transactions in the PE, public, and private company sectors, covering both later-stage and venture-stage deals.
Valuation Marks Also Decline
Middle market valuations dropped from an average TEV/Adjusted EBITDA multiple of 9.1x in the 2022/2023 period to 8.7x in the recent period, with an average transaction size of $304 million. Volume and valuation multiples were down across the board in public, private, and private equity transactions for middle market deals (net transaction value under $999 million).
- Public Transactions: Volume was down 19%, and valuations dropped from 8.9x to 8.8x, with an average transaction size of $293 million.
- Private Company Transactions: Volume was down 13%, with multiples falling from 10x to 8.1x on an average deal size of $251 million.
- PE-Sponsored Deals: Volume was off 9%, with multiples averaging 9.1x on an average deal size of $470 million.
TagniFi’s middle-market valuation benchmarks are based on later-stage transactions valued under $999 million, where pricing is reported with TEV/EBITDA multiples between 2x to 20x.
What’s Ahead?
The outlook varies. TagniFi’s team has been meeting with sell-side and buy-side middle market professionals across the country. While sellers report strong pipelines of businesses prepping for sale in the fall, buyers continue to express concern regarding the quality and performance of target firms.
More Private Transaction Data on Middle-Market Deals
PrivateComps by TagniFi is now operational. This private deal valuation database for the middle market features completed transaction information contributed anonymously by sell-side and buy-side professionals. Early contributors receive no-charge access in exchange for deal input. The database already includes over 1,000 deals from the past four years.