California regional M&A update: H2 2024

Strategic buyers take center stage in California M&A activity

Baker Tilly Capital, LLC recently released their California mergers and acquisitions (M&A) update report, which highlights the middle market transactions in the region in H2 2024.

Here are some key takeaways from the report:

• The California middle market M&A landscape saw an increase in activity in H2 2024. Both the number of transactions and the aggregate disclosed values of announced transactions increased relative to H1 2024
• H2 2024 recorded a total of 63 announced middle market M&A transactions, marking a 12.5% increase from H1 2024. However, there was a 24.7% decrease when comparing the full year 2024 to the full year 2023
• The cumulative value of middle market M&A deals reached $11.5 billion in H2 2024, reflecting a 12.4% increase from H1 2024
• Reported average enterprise value/revenue multiples in H2 2024 decreased relative to H1 2024 and the broader five-year lookback period. Average enterprise value/EBITDA multiples decreased from 10.4x in H1 2024 to 7.7x in H2 2024
• Strategic buyers were the most active buyer type in H2 2024, representing 72.2% of announced transactions with reported data
• The information technology sector was the most active in middle market M&A transactions, accounting for 29% of transactions during H2 2024. Healthcare, communication services, and consumer discretionary sectors followed, representing 22%, 14%, and 13%, respectively

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 2024. 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