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.
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)
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)
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.
Enterprise Value Deal Multiples
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
Business Services, Technology, and Healthcare continue to lead the region in M&A activity.
Pacific Northwest Deal Activity by Industry
Pacific Northwest Deal Activity by Investor Type