{"id":192157,"date":"2025-04-19T05:08:23","date_gmt":"2025-04-19T05:08:23","guid":{"rendered":"https:\/\/peraltafinancing.com\/accounting\/middle-market-ma-deal-trends-q4-2024\/"},"modified":"2025-04-19T05:08:23","modified_gmt":"2025-04-19T05:08:23","slug":"middle-market-ma-deal-trends-q4-2024","status":"publish","type":"post","link":"https:\/\/fivemor.com\/?p=192157","title":{"rendered":"Middle Market M&A Deal Trends \u2013 Q4 2024"},"content":{"rendered":"


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Trends Per GF Data 1<\/sup><\/h2>\n

By the end of the fourth quarter of 2024, private equity (PE)-backed deal volume \u201cwent out with a whimper,\u201d according to GF Data<\/a>. Per GF Data\u2019s database, 94 deals were recorded in the 4th<\/sup> quarter of 2024, a slight increase from the 82 completed transactions in the third quarter. For the full-year, GF Data recorded 379 completed transactions, this is compared to just 294 completed transactions in 2023. The aforementioned data has been pulled from 432 participating private equity firms who have provided transaction information to GF Data since 2003.<\/p>\n

One of the most common valuation multiples is TEV\/EBITDA. TEV is an acronym for total enterprise value. EBITDA is an acronym for earnings before interest, taxes, depreciation, and amortization, and is also a proxy for operating cash flow. GF Data provides transaction statistics on private equity-sponsored M&A transactions with deal values ranging from $10 to $500 million. A summary of TEV\/EBITDA multiples by TEV is detailed in the table below.<\/p>\n

TEV\/EBITDA Multiples by Quarter
<\/strong>\n<\/p>\n\n\n\n\n\n\n\n\n\n\n
TEV (in millions)<\/th>\nQ1 2023<\/th>\nQ2 2023<\/th>\nQ3 2023<\/th>\nQ4 2023<\/th>\nQ1 2024<\/th>\nQ2 2024<\/th>\nQ3 2024<\/th>\nQ4 2024<\/th>\n<\/tr>\n<\/thead>\n
$10-$25<\/td>\n6.4<\/td>\n5.4<\/td>\n5.9<\/td>\n6.2<\/td>\n6.3<\/td>\n6.5<\/td>\n6.4<\/td>\n6.6<\/td>\n<\/tr>\n
$25-$50<\/td>\n7.2<\/td>\n6.9<\/td>\n6.8<\/td>\n7.1<\/td>\n6.0<\/td>\n7.0<\/td>\n7.0<\/td>\n7.1<\/td>\n<\/tr>\n
$50-$100<\/td>\n7.9<\/td>\n8.0<\/td>\n8.7<\/td>\n7.6<\/td>\n7.9<\/td>\n8.7<\/td>\n8.9<\/td>\n7.5<\/td>\n<\/tr>\n
$100-$250<\/td>\n9.5<\/td>\n8.5<\/td>\n10.0<\/td>\n9.9<\/td>\n8.8<\/td>\n7.9<\/td>\n7.8<\/td>\n9.2<\/td>\n<\/tr>\n
$250-$500<\/td>\n12.2<\/td>\n9.0<\/td>\n14.8<\/td>\n9.6<\/td>\n8.7<\/td>\n10.8<\/td>\n8.9<\/td>\n12.1<\/td>\n<\/tr>\n
Total <\/td>\n7.6<\/td>\n6.8<\/td>\n7.3<\/td>\n7.3<\/td>\n6.8<\/td>\n7.4<\/td>\n7.2<\/td>\n7.3<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n

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As noted above, multiples have fluctuated over the past eight quarters, particularly based upon a company\u2019s total enterprise value. Further, GF Data notes the following in relation to the above 2024 multiples:<\/p>\n