In Q3 2022, equity contributions in M&A transactions amounted 54.3% of the total contribution in deals, but this dropped to 41.2% in Q4 2022 while debt increased from 45.7% to 58.8%. Private equity investors are no longer paying up with equity contributions on transactions. This shift indicates that valuations have come down and are normalizing towards the mean after a period of elevated multiples.
![](https://linkscap.com/wp-content/uploads/2023/03/Links-List-of-Multiples-and-Buyers-March-2023-page-2-pdf-1024x791.jpg)