What Middle-Market CEOs Need to Know Now: Part 1

2024-01-22T10:57:45+00:00March 3, 2016|Articles, Newsletter|

Q: In 2015, we heard a lot about how favorable the market was for acquisitions. What’s happening with deals in investment banking now? WILFONG: Indeed, 2015 was a very robust year for deals in the lower middle-market space which FOCUS defines as companies that do up to 250 million in revenue. This activity was driven by a couple of factors...

Large M&A Sellers Consistently Get Higher Prices than Small Sellers

2024-01-22T10:57:43+00:00January 2, 2016|Articles, Mergers, Acquisitions & Divestitures, Newsletter|

2015 FactSet statistics show that large M&A transactions had higher value multiples than small deals—and the premium is about 30 percent. Median EV/EBITDA multiples for deals exceeding $250 million approximated 12.4x, while the ratio for middle-market transactions was 9.5x. This phenomenon of higher multiples for larger deals has been persistent over time.

2015 M&A May Pass Records Set in 2000

2024-01-22T10:57:41+00:00October 27, 2015|Articles, Newsletter|

A whirlwind of wheeling and dealing continues to drive mergers and acquisitions through the third quarter. According to Thomson Reuters, this is the best year for M&A since before the financial crisis. Global M&A activity has risen 38% year-over-year to $2.18 trillion through the first half of 2015. InvestorPlace reports that “The third quarter was awash in big deals…A great chunk of that deal activity came from U.S. companies, as mergers and acquisitions rose 60% to $987.7 billion. For banking and legal advisers, business hasn’t been this brisk in the first half of a year since 1980…make no mistake — the market loves M&A. A flurry of deal activity signals that companies have confidence in the economy and stock market.”

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