4th Quarter 2015: Middle Market M&A Activity.pdf

W Partners is a boutique investment banking advisory firm providing financial advisory services to middle-market companies in the Western United States. The 2015 market environment was favorable for deal-making due to abundant cash on corporate balance sheets and private equity dry powder, cheap debt financing, and record low interest rates. Global M&A in 2015 reached $4.3 trillion, exceeding the previous high of $4.1 trillion in 2007, with 57 deals worth over $10 billion. Median deal multiples increased significantly, with revenue multiples rising 20% and EBITDA multiples reaching 11.2x. Global IPO volume decreased 2% to 1,218, with total value dropping 25% to $195 billion. Venture capital funding reached its highest level since 2000, with $77 billion invested across 8,097 financing rounds. Middle market M&A activity reached $140 billion in transaction value, with 1,350 transactions completed, and EBITDA transaction multiples peaked at 8.6x. The Healthcare and Technology sectors showed significant increases in M&A activity, while Energy and Materials transactions decreased. IPO activity moderated in the second half of 2015, with decreases in value and volume. Private placement activity increased, with capital raised up 40% in 2015.