As we review the quarterly activity of private equity mergers and acquisitions, it’s evident that the landscape is evolving, shaped by the aftershocks of the COVID-19 pandemic and shifting economic dynamics.

Since 2021, we’ve observed a rapid acceleration spurred by the pandemic, but now a noticeable deceleration in growth. Valuation multiples, particularly for deals ranging between $25-$50 million and $100-$250 million, have declined during this period. This trend suggests that the entire market is currently grappling with growth challenges. While transactions in the $50-$100 million range have seen a slight uptick, last quarter’s multiples are down from Q1 2022 when TEV/EBITDA multiples were 8.8x and now 8.2x. This signals a broader market trend toward re-evaluation and adjustment.  As purchase price multiples have contracted, the Total Debt / EBITDA debt multiples continue to revert to their mean and below.