M&A Report 2017 Q1

As Reported By PitchBook Data, Inc.

Strong Stock Market Performance and Perceived Stability Pushed US M&A Multiples Even Higher in Q1

While Europe faced a slowdown amid political and financial uncertainty, investors in the US were giddy about the possibility of corporate tax cuts and infrastructure bills. Though those initiatives now seem further from fruition, there is still plenty to be excited about. Q1 2017 S&P 500 earnings growth is expected to be 9.2% year over year, according to FactSet.

Protegrity AdvisorsNorth America saw a quarterly decrease in median EV/EBITDA (enterprise value/earnings before interest, taxes, depreciation and amortization) multiple, from 10.1x to 9.8x, however, if you exclude deal flow in Mexico and Canada, the trend is reversed. The median EV/EBITDA multiple for the US jumped from 10.2x in 4Q 2016 to 10.9x in 1Q 2017.

The US is still seen as a bastion of stability compared to Europe and emerging markets. While the European Central Bank continues its program of quantitative easing, the Fed has proceeded with its long-anticipated, albeit modest rate hikes. This course of action has kept financing incredibly cheap for corporate and financial sponsors, while also giving them confidence that the economy has a better chance at returning to a more normal credit environment.

For more information about M&A activity within a particular sector, please contact Gregg Schor at 631.285.3172, or GSchor@ProtegrityAdvisors.com.

< Back to News & Events

Client Testimonials

“Protegrity Advisors exhibited the highest level of professionalism, concern, business acumen and realism all while keeping me grounded and focused throughout the process of selling my business. Bruce Newman and his team have been my anchor for a number of years, counseling me through numerous corporate challenges. There was not a time when they did not know exactly how and when to execute a solution to challenges during the sale process. Protegrity gave me a great deal of confidence that the final outcome would be a positive one. I recommend Protegrity to any business facing challenges or contemplating a purchase or sale.”

Steven A. Mirones
President & CEO
Arimed Orthotics and Prosthetics