Navigating economic uncertainty: H2 2022 M&A trends in Pennsylvania
Baker Tilly Capital, LLC has issued a report on the state of middle market mergers and acquisitions (M&A) in Philadelphia and Central Pennsylvania in H2 2022. The report highlights a slight increase in the number of closed transactions in H2 2022 compared to H1 2022, but a 20% decrease from the same period in 2021.
Here are some key takeaways from the report:
- The consumer sector led M&A activity in the region, followed by healthcare and information technology sectors
- The median transaction size for middle market deals in Q4 2022 increased compared to Q3 2022
- The largest number of buyers and targets were located in SE Pennsylvania and Philadelphia areas
- The report notes continued investor demand offset by global economic uncertainty and rate hikes by the US Federal Reserve which put a significant premium on the cost of capital for investors reliant on debt to finance their acquisitions