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Baker Tilly Capital, LLC’s Great Lakes 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 any of the Great Lakes states of Illinois, Indiana, Michigan, Minnesota, Ohio or Wisconsin.

Transaction activity

Middle market M&A activity in the Great Lakes region remained slow in the second half of 2023 (H2 2023). Both the number of announced transactions and the aggregate disclosed values of completed transactions decreased relative to H1 2023.

There was a total of 44 announced middle market M&A transactions during H2 2023, a 20% decrease from H1 2023 and a 32% decrease when compared year-over-year (YoY) with H2 2022. The aggregate disclosed value of middle market M&A transactions in the Great Lakes region totaled $7.9 billion during H2 2023, a 25% decrease from H1 2023 and the lowest H2 semiannual total since H1 2020.

Transaction valuations

Average disclosed enterprise value (EV)/revenue multiples increased by 100% in H2 2023 relative to H1 2023 and remain above the five-year average of 2.2 times. Average disclosed EV/EBITDA multiples were at the highest levels over the last five years in H2 2023 and increased 56% from H1 2023.

Transaction profiles

Of the transactions in the Great Lakes states during H2 2023, Ohio had the most activity with 15 transactions, accounting for 34% of the region’s total transactions. M&A activity in Ohio increased by 50% compared to the 10 transactions announced in H1 2023. Illinois and Minnesota followed Ohio, with 10 and 8 announced transactions, respectively during H2 2023. Michigan had the fewest number of transactions announced during H2 2023, with 2 transactions, a 60% decline from state’s H1 2023 transaction volume.

Strategic buyers continue to be the most active buyer type in the Great Lakes region. During H2 2023, strategic buyers represented 82% of the region’s announced transactions.

Middle market M&A transactions in the Great Lakes region were not heavily concentrated in a particular industry during H2 2023. Industrials, healthcare, and financials were the most active sectors and collectively accounted for 56% of announced M&A transactions in the region.

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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

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

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Healthcare M&A update: H2 2023