Midwest & Great Lakes 3rd Quarter M&A Report

Nov 2017

2017|Midwest & Great Lakes 3rd Quarter M&A Report


Midwest and Great Lakes Deal Values and Count

3rd quarter (Q3) valuations exceeded market expectations but the number of Midwest and Great Lake M&A transactions continue a downward trend since its peak in Q4 2015. Even with a steady decline in deal count, revenue multiples remained stable around 1.7x while EBITDA multiples have hit their highest point (16.0x) since Q3 2015.

 

 

 

 

 

Industry Highlights

The IT sector was the most active industry in the Midwest and Great Lakes with 5 deals closing with total transaction values above 20x EBITDA. One of the largest transactions in the IT space was Home Advisor, Inc. acquisition of Angie’s List for $629M. Interestingly, Angie’s List was valued at 53x EBITDA.

Other Significant M&A Deals in the Midwest

Other significant deals in the Midwest Great Lake region include Bass Pro Shops’ acquisition of Cabela’s for $8.7B and JAB’s (Parent Co. of Keurig and Caribou Coffee) acquisition of Panera Bread for $7.8B