Baker Tilly Capital, LLC’s Great Lakes regional M&A update provides a recap of middle-market transactions where the target is located in Illinois, Indiana, Michigan, Minnesota, Ohio or Wisconsin. The “middle market” for purposes of this newsletter is defined as transactions with enterprise values between $10 and $200 million.
Middle-market M&A transactions in the Great Lakes region with reported transactions values between $10 and $200 million experienced a decrease in the total amount of deal volume, but experienced an increase in aggregate deal value during the second quarter of 2017 (Q2-2017). As illustrated below, the number of deals with reported values decreased to 26 during Q2-2017. During the last 12 months, an average of 28 deals closed per quarter. During Q2-2017, the aggregate value of deals with reported transaction values bounced back from the lowest point since the first quarter of 2013. This reverses the downward sloping trend over the previous four quarters. Fewer reported closed deals is partially explained by the cooling off of the strong M&A market during 2014 and 2015. While the trend line for number of transactions and deal value have been downward sloping, higher EBITDA multiples are continuing. Anticipated tax reform is expected to increase M&A activity.