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Strategic buyers take center stage in California M&A activity

Baker Tilly Capital, LLC recently released their California M&A update report, which highlights the middle market transactions in the region in H1 2023.

Here are some key takeaways from the report:

  • The California middle market M&A landscape continued its downward trajectory in H1 2023, mirroring recent trends. Notably, both closed transaction numbers and aggregate disclosed values saw declines compared to H2 2022 and the broader five-year look-back period
  • H1 2023 recorded a total of 44 closed middle market M&A transactions, marking a significant 30% drop from H2 2022 and an even more substantial 39% decrease compared to H1 2022
  • The cumulative value of middle market M&A deals reached $4.1 billion in H1 2023. This contrasts with H2 2022, reflecting a sharp 47% decline and setting a new low for semi-annual totals from 2019 to 2023
  • H1 2023 showcased the ascendancy of strategic buyers in California's M&A landscape, with 100% of closed transactions involving strategic buyers. This pronounced shift underscores their central role in shaping the M&A narrative
  • Despite the overall contraction, sectoral analysis revealed intriguing patterns. The information technology sector retained its prominence, contributing to 40% of total transactions in H1 2023. Consumer discretionary, healthcare, and telecommunications services sectors followed, accounting for 16%, 11%, and 11%, 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: H1 2023. 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
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Mergers and acquisitions reports

See more M&A reports

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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