GCG’s Q4 2020 Middle Market M&A Update provides an overview of the latest trends in the market, including recent performance of select sectors and the state of the middle-market M&A environment.

Key findings include the following:

• • GCG’s proprietary middle market industry sector performance index shows a sharp positive turn for small cap stocks vs the S&P 500 index. For over a year, each industry sector has trailed the S&P 500 index. That changed dramatically in the 4^th quarter of 2020. While all sectors improved, Automotive, Technology and Consumer Goods actually posted returns for 2020 in excess of the S&P index.

• • GCG’s small cap public company index finished the year with the highest revenue and EBITDA multiples for the year. EBITDA multiples increased 56 percent from April 2020 to December of 2020.

• • Middle-market transaction volume for the 4^th quarter of 2020 continues to accelerate and experienced the highest quarter of 2020. Transaction volume is up 88 percent from the 2^nd quarter low. That said, volume in the 4^th quarter of 2020 was still 10 percent lower than the 4^th quarter of 2019.

• • Overall, the 4^th quarter saw a strengthening of deal volume and deal value for the middle-market. While the 4^th quarter continued the positive trend in M&A, there are still choppy waters in the M&A environment.

Click here for the full update.

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