Midwest M&A Quarterly Update

First Quarter 2019

Frothiness Persists, but Sectors Diverging

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Middle market valuations remain elevated due to excess dry powder at both
private equity groups and strategic buyers; certain industries are experiencing
headwinds in 2019 driven by uncertainty in the macro environment

Executive Summary

Midwest strategic buyers and investors continue to hold record levels of cash as they pursue increasingly scarce attractive target opportunities. The limited number of qualified targets have been driving competition amongst buyers as valuations endure well above historical averages –valuation multiples in Q4 2018 for $10-$250mm transactions rose to an average 7.8x TEV / Adjusted EBITDA.

Seller awareness of ballooned valuations and eager capital requiring near-term deployment has created an environment where they are equally, if not more, anxious to complete a transaction. As both parties sense looming market risk, increased debt prices and continued slow organic growth, the urgency to transact has increased.

Report Includes:

  • Executive Summary
  • Buyer Trends
  • Bridgepoint Midwest M&A Index
  • Q4-18 Midwest M&A By State
  • Selected Midwest Q4-18 M&A Transaction Statistics
  • Selected Midwest Q4-18 M&A Transactions
  • and more!