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Baker Tilly Capital, LLC’s Philadelphia and Central Pennsylvania 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 Philadelphia and Central Pennsylvania region.

Transaction activity

Middle market M&A activity in the Philadelphia and Central Pennsylvania region increased in the second half of 2023 (H2 2023). Both the number of announced transactions and the aggregate disclosed values of completed transactions increased relative to the near term, H1 2023. There was a total of 22 reported announced middle market M&A transactions during H2 2023, a 47% increase from H1 2023 and a 5% increase when compared with H2 2022. The aggregate disclosed value of middle market M&A transactions in the Philadelphia and Central Pennsylvania region totaled $4.5 billion during H2 2023, a 28% increase from H1 2023 and the highest semiannual total since H2 2021.

Transaction valuations

Reported average enterprise value/revenue multiples was 1.6 times in H2 2023, the lowest of any period during the previous five years (2019-2023). Average enterprise value/EBITDA multiples also remained below the region’s five-year average in H2 2023. Note, no valuation multiples were disclosed on announced transactions in H1 2023.

Transaction profiles

In the Philadelphia and Central Pennsylvania region, strategic buyers were the primary buyer type during H2 2023 accounting for 82% of announced transactions. Financial buyers represented 14% of announced transactions; remaining transactions were undisclosed.

Middle market M&A transactions in the Philadelphia and Central Pennsylvania region were primarily concentrated in the industrials, financial, and healthcare sectors, collectively accounting for 63% of all announced transactions during H2 2023. Information technology and consumer discretionary sectors also had an active role in region, each representing 14% of announced transactions.

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Merger and acquisition reports

See reports for different industries and regions

Baker Tilly Capital professionals develop 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