GCG’s Q2 2023 Middle Market Update provides an overview of the latest trends in the market, including the recent performance of select sectors and the state of the middle market M&A environment.
Key findings include the following:
- The S&P 500 index has extended its gains over the past year, up 16.5 percent for the year ending June 30, 2023. This is much different than the Greenwich Capital Group middle market index, which is down 9.5 percent over the same period of time.
- The best-performing middle-market sectors over the past year were: 1) Business Services, 2) Technology, and 3) Aerospace & Defense. Each of these subsectors were still down for the year but only down 3.4 percent to 13.7 percent.
- Middle market EBITDA multiples are down approximately 9 percent from the same point a year ago. That decline is to be expected, given the rise in interest rates, which have a negative bearing on valuations.
- The 2nd quarter of 2023 was the lowest quarter of M&A volume and M&A value over the past two years. While closed M&A deals were down during the 2nd quarter, we expect this to change course over the next two quarters. Deal activity has picked up, and we expect to see higher volumes of closed deals in the 3rd and 4th quarters.
Click here for the full update.