Pittsburgh regional M&A update: Q3-2016

Economic and market data

The preliminary unemployment rate in the Pittsburgh region was estimated at 6.4% for August 2016, above the national rate of 5.0%. The Pittsburgh region unemployment rate had increased 0.6% from 5.8% in the second quarter of 2016. (BLS.gov)

The third quarter of 2016 (Q3-2016) showed positive performance for the broader U.S. equity market, as the S&P, DJIA and NASDAQ closed up 3.3%, 2.1% and 9.7%, respectively, for the quarter.

M&A activity

There were 45 reported M&A transactions during Q3-2016 up from 39 transactions during Q2-2016. Q3-2016 also marked a decrease from 53 deals for the same period in 2015.

The aggregate deal value of the M&A transactions with reported values was $3.3 billion during Q3-2016, a marked increase from the total deal value of $2.3 billion in Q2-2016 and a substantial decrease from $58.7 billion in Q3-2015. We would note that in the dramatic increases in aggregate deal values in Q2-2013, Q4-2013, Q1-2015 and Q3-2015 were driven by megadeals that closed in each respective quarter.

Pittsburgh regional market M&A activity:
Aggregate transaction value and number of deals

M&A activity by industry

The consumer sector and the industrial sector led the Pittsburgh region’s M&A activity, each accounting for 27.3% percent of the total deals announced in Q3-2016. The information technology sector accounted for the third largest percentage of the total deals for the period with 20.5%. Healthcare followed, accounting for 9.1%. Financials, energy, and materials sectors comprised the balance of the total for the period representing 6.8%, 6.8% and 2.3%, respectively.

Source: S&P Capital IQ and Baker Tilly Capital research, September 2016

There were six middle-market transactions with reported values announced during Q3-2016, up from three during Q2-2016. Q3-2016 also marked an increase from five middle-market deals with reported values for the same period in 2015.

Pittsburgh regional middle-market M&A activity:
Aggregate transaction size and number of deals

The average transaction size of $76.3 million for the six middle-market deals with reported values in Q3-2016 was a $2.2 million decrease from the average transaction size of the three middle-market deals with reported values in Q2-2016, and the fourth highest average value over the last sixteen quarters.

Pittsburgh regional middle-market M&A activity:
Average transaction size

Source: Capital IQ and Baker Tilly Capital research, September 2016
Middle-market is defined as transaction values between $10 million and $200 million.

Buyers and targets by location

As presented below, the largest number of buyers and sellers were located in the Pittsburgh area during Q3-2016.

Buyers by location

Sellers by location

Notable Q3-2016 closed Pittsburgh middle-market deals >

Source: Capital IQ and Baker Tilly Capital research, September 2016

View the full Pittsburgh regional M&A update >


For more information on this deal, or to learn how Baker Tilly Capital specialists can help, contact our team.

Baker Tilly Capital, LLC disclosure >
Baker Tilly Capital, LLC privacy policy >