Pennsylvania regional M&A update: H2 2024

Navigating economic uncertainties: M&A trends

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

Here are some key takeaways from the report:

• Middle market M&A activity in the Philadelphia and Central Pennsylvania region increased marginally year-over-year and compared to H1 2024. However, the aggregate disclosed values of completed transactions were lower year-over-year and versus H1 2024
• H2 2024 recorded a total of 26 announced middle market M&A transactions, marking an 8.3% increase from both H2 2023 and H1 2024
• The aggregate disclosed value of middle market M&A transactions in the Philadelphia and Central Pennsylvania region totaled $2.5 billion during H2 2024, a 41.3% decrease from H1 2024 and a 50.2% decrease from H2 2023
• The reported average enterprise value (EV) / revenue multiple was 3.3x in H2 2024. Since H2 2023, average EV / revenue multiples have continued to move higher toward the five-year average of 3.6x. There were no disclosed EV / EBITDA multiples on announced transactions in H2 2024 or H1 2023
• Strategic buyers were the primary buyer type during H2 2024, accounting for 73% of announced transactions. Financial-backed strategic buyers represented 9% of buyers while no announced transactions had a financial buyer. The buyer types in the remaining 18% of transactions were undisclosed
• Deals in the financials and industrials sectors were the most common middle market M&A transactions in the Philadelphia and Central Pennsylvania region in H2 2024 with 8 and 6 closed deals, respectively. The consumer discretionary and healthcare sectors each saw 3 closed deals during the period while the consumer staples, information technology, and utilities sectors each had 1 closed deal. The remainder of closed deals were in undisclosed sectors

Dig into our report

For an in-depth look at M&A activity in the Philadelphia and Central Pennsylvania region, download a copy of the Pennsylvania regional M&A update (Central PA and Philadelphia) H2 2024. The report includes:

• Regional market activity
• 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

To view more on this topic or learn how Baker Tilly specialists can help, contact our team.

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