California regional M&A update: H2 2023

Introduction

Baker Tilly Capital, LLC’s California regional mergers and acquisitions (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 California.

Transaction activity

Middle market M&A activity in California continued to decline in the second half of 2023 (H2 2023). Both the number of transactions and the aggregate disclosed values of announced transactions declined relative to the near term, H1 2023, and over the five-year look-back period. There was a total of 69 reported announced middle market M&A transactions during H2 2023, an 18% decrease from H1 2023 and a 32% decrease when compared with H2 2022. The aggregate disclosed value of middle market M&A transactions in California totaled $11.6 billion during H2 2023, a 14% decrease from H1 2023 and the lowest semiannual total over the historical period (2019-2023).