New England regional M&A activity sees a slowdown in H2 2022 with healthcare emerging as a leading segment.
Baker Tilly Capital, LLC has issued a report on the state of middle market mergers and acquisitions (M&A) in New England in H2 2022. The report highlights a decline in M&A activity in the region, with 29 reported transactions during H2 2022, down from 63 in the same period of 2021 and 47 in H1 2022.
Here are some key takeaways from the report:
- The aggregate disclosed value of M&A deals in H2 2022 was $5.6 billion, down from $11.0 billion in H1 2022 and a 52% YOY decrease from $11.6 billion in H2 2021
- The healthcare segment was the most active during the second half of 2022, accounting for 48.1% of M&A deals closed, up from 22.0% in H1 2022, followed by industrials and information technology
- Massachusetts had the most activity with 18 transactions, followed by Connecticut and New Hampshire
- Strategic buyers were the most active buyer type during H2 2022, representing all but one of the closed transactions with reported data
- The disclosed enterprise value/EBITDA multiples expanded slightly during H2 2022, influenced by strong reported transaction multiples in the information technology sector