Resource | Baker Tilly Capital Insider
Great Lakes regional M&A update: H1 2024
Introduction
Baker Tilly Capital, LLC’s Great Lakes regional M&A update provides a recap of middle market transactions (i.e., deals with reported enterprise value between $10 million and $1 billion) with the target company located in any of the Great Lakes states of Illinois, Indiana, Michigan, Minnesota, Ohio or Wisconsin.
Transaction activity
Middle market M&A activity in the Great Lakes region remained slow in H1 2024. Both the number of announced transactions and the aggregate disclosed values of completed transactions remained stable relative to H2 2023.
There was a total of 47 announced middle market M&A transactions during H1 2024, a 4% decrease from H2 2023 and an 18% decrease when compared year-over-year (YoY) with H1 2023. The aggregate disclosed value of middle market M&A transactions in the Great Lakes region totaled $12.3 billion during H1 2024, a 43% increase from H2 2023.
Transaction valuations
Average disclosed enterprise value (EV)/revenue multiples decreased by 17% in H1 2024 relative to H2 2023 and remained above the 5-year average of 2.2x. Average disclosed EV/EBITDA multiples decreased by 7% in H1 2024 relative to H2 2024 to 10.5x which is just below the 5-year average of 11.3x.
Transaction profiles
Of the transactions in the Great Lakes states during H1 2024, Minnesota had the most activity with 13 transactions, accounting for 28% of the region’s total transactions. M&A activity in Minnesota increased by 63% compared to the 8 transactions announced in H2 2023. Illinois and Michigan followed Minnesota, with 11 and 10 announced transactions, respectively during H1 2024. Indiana had the fewest number of transactions announced during H1 2024, with 1 transaction, an 83% decline from state’s H2 2023 transaction volume.
Strategic buyers continue to be the most active buyer type in the Great Lakes region. During H1 2024, strategic buyers represented 66% of the region’s announced transactions.
Middle market M&A transactions in the Great Lakes region were not heavily concentrated in a particular industry during H1 2024. Industrials, financials and consumer discretionary were the most active sectors and collectively accounted for 57% of announced M&A transactions in the region.
Mergers and acquisitions reports
See reports for different industries and regions
Baker Tilly Capital professionals develop mergers and acquisitions (M&A) updates in different industries and regions. These reports provide an overview of M&A activity, including:
- M&A activity by market segment
- Transaction data for middle market M&A activity
- Buyers and targets by location
- Notable transactions closed during the period of the report
