GCG’s Q3 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:

• • During the past 12 months, Greenwich Capital Group’s middle market index has underperformed the S&P 500 considerably. The S&P 500 is up 16.6% over this period, while the middle market is down 12%.
  • Unlike prior quarters, there have been a couple of industry groups in the middle market that finished in positive territory.
    • Aerospace & Defense (up 4.2%) and Business Services (up 2.5%) are both positive results compared to prior quarters.
  • Trading multiples in the middle market continue to contract. While the reduction in multiples is not that significant, they do reflect a higher interest rate environment with a lot of economic and macro uncertainty.
  • M&A volume and values in the middle-market are up slightly in the 3^rd quarter. This is a direct result of more deals coming on line late in the first quarter and 2^nd quarter of 2023. We expect to continue to see an increase in deal activity during the 4^th quarter and into 2024.
  • The most active sectors in middle-market M&A during the third quarter were: 1) Industrials, 2) Health Care, and 3) Information and Technology. Consumer-based deals saw the sharpest drop from last year at this time.

Click here for the full update.

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