Resource
Pennsylvania regional M&A update: H1 2024
Introduction
Baker Tilly Capital, LLC’s Philadelphia & Central Pennsylvania 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 Philadelphia & Central Pennsylvania region.
Transaction activity
Middle market M&A activity in the Philadelphia & Central Pennsylvania region increased year-over-year (YoY) in H1 2024 and remained flat compared to H2 2023. The aggregate disclosed value of completed transactions were also higher YoY while aggregate disclosed value were lower compared to H2 2023. There was a total of 23 reported announced middle market M&A transactions during H1 2024, a 92% increase from H1 2023 and flat when compared with H2 2023. The aggregate disclosed value of middle market M&A transactions in the Philadelphia & Central Pennsylvania region totaled $3.8 billion during H1 2024, a 48% increase from H1 2023 and a 7% decrease from H2 2023.
Transaction valuations
Reported average enterprise value (EV) / revenue multiple was 2.6x in H1 2024, rebounding from a five-year low of 1.5x in H2 2023 but still below historic levels. Average EV / EBITDA multiples also expanded but remained below the region’s five-year average in H1 2024. Note, no valuation multiples were disclosed on announced transactions in H1 2023.
Transaction profiles
In the Philadelphia & Central Pennsylvania region, strategic buyers were the primary buyer type during H1 2024 accounting for 83% of announced transactions. Financial buyers represented 4% of announced transactions while financial-backed strategic buyers represented 9%. The buyer types in the remaining transactions were undisclosed.
Middle market M&A transactions in the Philadelphia & Central Pennsylvania region were evenly split among the consumer discretionary, financials, health care, industrials and information technology sectors, collectively accounting for 92% of all announced transactions during H1 2024. Communication services accounted for 4% of announced transactions and 4% of announced transactions were in undisclosed sectors.
Merger and acquisition reports
See reports for different industries and regions
Baker Tilly Capital professionals develop 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
