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May 2017

Q1 2017 M&A Update

Greenwich Capital Group LLC’s Q1 2017 Middle-Market M&A Update provides a data-driven analysis of the overall state of the U.S. middle-market M&A environment, which includes transaction volumes and values, valuation multiples and private equity deal flow. The report also highlights M&A trends in the Food & Beverage, Healthcare and Industrials sectors.

Key findings include the following:

  • Q1 2017 transaction volume totaled 6,487 deals that resulted in $35.9 billion of value, representing a 2.2% quarterly increase in volume and 20.4% decrease in value from Q4 2016.
  • Valuation multiples reached an average of 10.3x EBITDA in Q1, a significant increase from 9.4x in the prior quarter. Multiples are anticipated to remain at near recent highs as private equity funds and corporations continue to compete for acquisitions.
  • Food & Beverage M&A activity remained strong in Q1. Strategic buyers continue to dominate overall deal flow as corporations seek acquisitions to offset slowing organic growth and to diversify their offerings.
  • Healthcare Providers and Services led Healthcare M&A activity in Q1 2017, driven by anticipated payment model changes and regulatory requirements causing physicians to affiliate with larger health systems, sell to larger practices or partner with private equity.
  • Q1 was a strong quarter for Industrials M&A, led by strategic buyers armed with strong balance sheets and record high levels of cash available for investments.

View the complete Q1 2017 Middle-Market M&A Update for a more in-depth analysis of key market trends and observations.