Central Pennsylvania middle market M&A update: Third quarter 2015

M&A activity1

  • M&A activity in the Central Pennsylvania region dipped during the third quarter of 2015, relative to the same period in 2014 with 29 total closed deals, compared to 33 closed deals Q3 2014.
  • Strategic acquirers continued to outpace financial sponsors in the region, representing 26 of the 29 (approximately 90 percent) closed transactions in Q3-2015. Private equity firms comprised the balance of the closed deals in the quarter.
  • In Q3-2015, six of the 29 closed deals had reported deal values, which totaled $3.03 billion in aggregate. Of the transactions with reported values, only two involved the acquisition of a middle market company with a reported value.
Middle market aggregate transaction size
  • For transactions that disclosed value, the average middle market deal value increased from $24.0 million in Q2-2015 to $86.0 million in Q3-2015; however, with only two middle market transactions with a disclosed value in the quarter it is difficult to draw any conclusions from this data.
Average size of deals with reported values
Quarterly regional M&A volume – 2012 to present
  • Deal volume in Q3-2015 (29 deals) moved slightly lower than the Q2-2015 volume (30 deals), representing the weakest quarter within our records.
  • Central Pennsylvania M&A activity by industry was heavily weighted towards the Industrials and Consumer sectors during the third quarter, representing 34.5 percent and 20.7 percent of total activity, respectively.
M&A activity by industry Q3-2013

Buyers and targets by location

  • As presented below, the largest number of buyers were located in the Harrisburg area during the third quarter of 2015, while the largest number of entities acquired were located in the Lancaster area.
Buyers by location
Targets by location

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1Capital IQ and Baker Tilly Capital Research, June 2015.

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