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M&A Insights – Mark Young, Managing Partner, CKS Advisors

Welcome to the October 2019 edition of M&A Insights. Our goal at CKS Advisors is to help you stay up-to-date on the Merger and Acquisitions climate.

This month, we highlight select data from Q3 S&P Global Market Intelligence data. The data focuses on Private Equity acquisition activity through Q3 2019.

Key Points:

  • Private Equity acquisition volume through Q3 fell to 3,978 deals, compared to 4,503 deals for the same period of last year.
  • Conversely, Private Equity add-on acquisition activity (popular for acquiring lower middle market companies) has slightly risen through Q3 2019 to 2,468 deals, 8 more than the same period last year.
  • Gross transaction value is 19% lower through Q3 2019 than the same period in 2018.

Our Takeaways:

  • Acquisition activity by Private Equity backed companies (Platforms) remains strong as they continue to acquire lower middle market companies (companies with revenue $10 to $50 million- even smaller in some cases).
  • Although overall activity has fallen slightly in 2019, both deal volume and purchase price multiples remain at historically elevated levels.

If you would like to learn more about the M&A market or are ready to take the next step to explore your options, we would be glad to meet. Please contact me at 480-351-8533 or myoung@cksadvisors.com.