Middle Market M&A: Ready to Increase?

Fox business reports that mid-sized businesses are poised to grow this year according to data compiled by the National Center for the Middle Market.  The middle market M&A conditions index climbed to 57.9. Any reading over 50 indicates an expansion in M&A business. As reported in CCCA's February Middle Market M&A Report, deal makers reported a spike in early stage deal flow, which also bodes well for mid-market M&A activity. Read the entire article here.

CCCA Economic Dashboard: November 22nd, 2013

November 25, 2013 12:59 by Clayton Reeves in Capital Markets, Economy  //  Tags: , , , ,   //   Comments (0)
Attached is the CCCA economic dashboard as of November 22nd, 2013. Click here to view a larger image.

CCCA Economic Dashboard: November 15th, 2013

November 18, 2013 15:58 by Clayton Reeves in Capital Markets, Economy  //  Tags: , , , , , , ,   //   Comments (0)
Attached is the CCCA economic dashboard as of November 15th, 2013. Click here to view a larger image.

Pitchbook PE Deal Multiples Show Deal Multiples for Small Deals Falling

November 14, 2013 09:47 by Clayton Reeves in Capital Markets, Financing, M&A, Private Equity  //  Tags: , , , , , ,   //   Comments (0)
As reported by Pitchbook, PE transaction multiples were reasonably steady in Q3 2013. However, deal size showed significant changes. For example, median enterprise value (EV) for small deals (EBITDA<$25 million) fell from 5.0x in Q2 to 2.5x in Q3. On the flip side, EV/EBITDA multiples rose to 10.7x for transactions of $250 million or more, while revenue multiples fell to 1.7x, the lowest in over two years. So, what does this mean for the market? It means PE firms (and the market in general) continue to pay for profitability over pure sales. Market participants definitely want revenue growth, but they also want healthy margins and solid business models. Since companies with both are rare, PE firms continue to pay a premium on larger transactions. There is generally still no rush towards companies that show revenues, but lack profits, unless the growth story is compelling (i.e., Twitter).  Key statistics from 3Q 2013 explored in this report include: Median EBITDA multiple:6.81x Median debt percentage: 50% Average time to close a deal: 13 weeks Read the full report here.

CCCA Economic Dashboard: November 1st, 2013

November 4, 2013 14:35 by Clayton Reeves in Capital Markets, Economy  //  Tags: , , , , ,   //   Comments (0)
Attached is the CCCA economic dashboard as of November 1st, 2013. Click here to view a larger image.

CCCA Economic Dashboard: October 25th, 2013

October 28, 2013 16:52 by Clayton Reeves in Capital Markets, Economy  //  Tags: , , , ,   //   Comments (0)
Attached is the CCCA economic dashboard as of October 25th, 2013. Click here to view a larger image.

CCCA Economic Dashboard: October 18th, 2013

October 22, 2013 10:20 by Clayton Reeves in Capital Markets, Economy, Financing  //  Tags: , , , ,   //   Comments (0)
Attached is the CCCA economic dashboard as of October 18th, 2013. Click here to view a larger image.

CCCA Economic Dashboard: October 11th, 2013

October 15, 2013 10:55 by Clayton Reeves in Capital Markets, Economy  //  Tags: , , , , , , ,   //   Comments (0)
Attached is the CCCA economic dashboard as of October 11th, 2013. Click here to view a larger image.

CCCA Economic Dashboard: September 6th, 2013

September 9, 2013 12:12 by Clayton Reeves in Capital Markets, Economy  //  Tags: , , , ,   //   Comments (0)
Attached is the CCCA economic dashboard as of September 6th, 2013. Click here to view a larger image.  

CCCA Economic Dashboard: August 23rd, 2013

August 26, 2013 15:17 by Clayton Reeves in   //  Tags: , , ,   //   Comments (0)
Attached is the CCCA economic dashboard as of August 23rd, 2013. Click here to view a larger image.

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