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New England regional M&A update: H1 2024
Oct 02, 2024 · Authored by
Introduction
Baker Tilly Capital, LLC’s New England regional M&A update provides a recap of middle market transactions (i.e., deals with reported enterprise value (EV) between $10 million and $1 billion) with the target company located in any of the New England region states of Connecticut, Maine, Massachusetts, New Hampshire, Rhode Island, or Vermont.
Transaction activity
Middle market M&A activity in the New England region remained slow in H1 2024. The number of announced transactions increased marginally compared to H2 2023 but was slightly below the number of announced transactions in H1 2023. The aggregate disclosed values of completed transactions decreased relative to both H1 2023 and H2 2023.
There was a total of 32 announced middle market M&A transactions during H1 2024, a 3% increase from H2 2023 and a 9% decrease when compared to H1 2023. The aggregate disclosed value of middle market M&A transactions in the New England region totaled $4.5 billion during H1 2024, a 52% decrease from H2 2023 and a 13% decrease from H1 2023.
Transaction valuations
Average disclosed EV / revenue multiples were 3.8x over the period spanning from H1 2019 to H1 2024. Note, no average enterprise value EV / revenue multiples were disclosed for H2 2023. Average disclosed EV / EBITDA multiples were 15.5x over the period spanning from H1 2019 to H1 2024. No EV / EBITDA multiples were disclosed for H2 2022, H1 2023, and H2 2023.
Transaction profiles
Of the transactions in the New England region during H1 2024, Massachusetts had the most activity with 18 transactions, accounting for 56% of the region’s total transactions. M&A activity in Massachusetts decreased compared to the 20 transactions announced in H2 2023 and 23 transactions announced in H1 2023. Connecticut and New Hampshire followed Massachusetts, with 12 and 2 announced transactions, respectively during H1 2024. Maine, Rhode Island, and Vermont all had 0 transactions announced in H1 2024.
Strategic buyers were the most active buyer type in the New England region. During H1 2024, strategic buyers represented 50% of the region’s announced transactions. Financial buyers accounted for 3% of transactions while financial-backed strategic buyers represented 6% of transactions. The buyer type for the remainder of transactions was undisclosed.
Middle market M&A transactions in the New England region were concentrated in the healthcare and information technology industries during H1 2024, accounting for 25% and 22% of transactions, respectively. Industrials, consumer discretionary, and financials rounded out the balance, representing approximately 53% of the region’s M&A transactions in H1 2024.
Mergers and acquisitions reports
See reports for different industries and regions
Baker Tilly Capital professionals develop mergers and acquisitions (M&A) updates in different industries and regions. These reports provide an overview of M&A activity, including:
- M&A activity by market segment
- Transaction data for middle market M&A activity
- Buyers and targets by location
- Notable transactions closed during the period of the report
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