California regional M&A update: H2 2022

Middle market deals decline in California

Baker Tilly Capital, LLC recently released their California M&A update report, which highlights the middle market transactions in the region in H2 2022.

Here are some key takeaways from the report:

• Middle market M&A activity in California continued to decline in H2 2022, with a 13% decrease in the number of closed transactions and a 32% decrease in the aggregate disclosed value of completed transactions compared to H1 2022. This decline was also significant when compared to H2 2021 and the five-year look-back period
• Reported average enterprise value / Revenue multiples ticked up in H2 2022 compared to H1 2022 and the broader five-year look-back period, while average enterprise value / EBITDA multiples decreased slightly
• Strategic buyers were the most active buyer type in H2 2022, representing 98% of closed transactions with reported data
• Four industries - information technology, consumer discretionary, industrials and healthcare - accounted for approximately 80% of the California middle market M&A transaction during H2 2022

Dig into our report

For an in-depth look at M&A activity in the California, download a copy of the regional M&A update: H2 2022. The report includes:

• Regional market activity
• M&A activity by market segment
• Transaction profiles for middle market M&A activity
• Buyers and targets by location
• Transactions by industry sector