Chinook
Expert Advice for Business Ownership Transactions
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OWNER RESOURCES |

RESOURCES FOR BUSINESS OWNERS


Owner Resources

As a business owner, there are many aspects to consider. You need to stay ahead of the curve, know the trends, how to handle your clients, your staff, your finances, all while keeping the big picture clear ahead. Things can change and goals need to be tweaked along the way. At Chinook, we offer you help with that clarity, those tweaks, your goals. Here, you will find some materials to help guide your way. 

The Chinook Report - 2H 2018

This report, published twice a year, provides an update on M&A activity for the second half of 2018, focusing on global, national, and Pacific Northwest trends. Selected transactions are profiled with an Enterprise Value (EV) between $10 million and $50 million. Our data is sourced from GF Data, PitchBook and other publications. GF Data is a member-only subset of information that exclusively focuses on private equity transactions.

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GLOBAL & U.S. DEAL VALUE RISES BUT NUMBER OF DEALS FALLS

Global M&A deal value for the full year of 2018 rose to $3.53 trillion, making last year the third-largest year on record since 2001. However, despite the 12% rise from 2017, global deal volume fell for the first time since 2010. 

 Global M&A Activity (2013-2018)

Source: Mergermarket Global & Regional M&A Report 2018

Source: Mergermarket Global & Regional M&A Report 2018

U.S. deal volume also experienced a decline, despite 2018 being the fourth consecutive year with aggregate deal values above $2 trillion. Healthcare and technology mergers drove the larger deal activity during the second half of the year. 

U.S. M&A Activity (2008-2018)

Source: PitchBook 2018 M&A Report

Source: PitchBook 2018 M&A Report

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LOWER-MIDDLE MARKET EBITDA MULTIPLES REMAIN STEADY 

EBITDA multiples for companies with an enterprise value between $10-25 million returned to a 5-year average while larger companies between $25-50 million reached a 5-year high (YTD 2018 5.8x and 6.8x, respectively) in the second half of 2018. 

EBITDA Multiples

Source: GF Data M&A Report November 2018

Source: GF Data M&A Report November 2018

Enterprise Value Deal Multiples

Source: GF Data M&A Report November 2018

Source: GF Data M&A Report November 2018

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PACIFIC NORTHWEST DEAL VOLUME SLOWS TO 3-YEAR LOW

 Total deal volume in the Pacific Northwest declined in the second half of 2018, compared to the first half. This follows a trend over the past three years where deal volume for the second half of the year was lower than the first half.  

Pacific Northwest Deal Volume

Source: PitchBook

Source: PitchBook

Business Services, Technology, and Healthcare continue to lead the region in M&A activity. 

Pacific Northwest Deal Activity by Industry

Source: PitchBook

Source: PitchBook

Pacific Northwest Deal Activity by Investor Type

Source: PitchBook

Source: PitchBook

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SELECT 2H 2018 PACIFIC NORTHWEST M&A DEAL ACTIVITY – FOCUS ON TRANSACTIONS WITH AN ENTERPRISE VALUE GENERALLY FROM $10 MILLION TO $50 MILLION

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Source: PitchBook, Portland Business Journal, Puget Sound Business Journal

Source: PitchBook, Portland Business Journal, Puget Sound Business Journal

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reportsOliver Enquist