Texas regional M&A update: H2 2023

Introduction

Baker Tilly Capital, LLC’s Texas 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 Texas.

Transaction activity

Middle market M&A activity in Texas continued to decline in the second half of 2023 (H2 2023). Both the number of announced transactions and the aggregate disclosed values of completed transactions declined relative to the near term, H1 2023. There was a total of 30 reported announced middle market M&A transactions during H2 2023, a 21% decrease from H1 2023 and a 35% decrease when compared with H2 2022. The aggregate disclosed value of middle market M&A transactions in Texas totaled $6.9 billion during H2 2023, a 23% decrease from H1 2023 and the lowest semiannual total since H1 2020.