United States

Quality targets hinders deal volume in business products and services

4Q 2015 Business Products and Services Industry Spotlight

INSIGHT ARTICLE  | 

Download report

Similarly to recent quarters, quarterly M&A volume for the business products and services (B2B) industry moved lower in Q3, despite a significant jump in aggregate value. The period registered nearly $65 billion in completed transaction value across 825 completed deals. This translates into a quarter on quarter (QoQ) decline of over 8 percent in terms of deal counts, but a rather impressive 57 percent QoQ jump in total deal worth.

Revenue growth remains a struggle for many enterprises, and while strategic acquirers continue to seek out synergistic combinations, private equity-backed M&A activity paused somewhat during recent quarters, likely due to a reassessment period, as investors gauge the global investment landscape. Current valuation levels also haven’t helped when it comes to private equity investment. Multiples are trending a bit lower, yet they still remain fairly heightened, and as deal-makers look to evaluate deal prices, the decline in volume last quarter is potentially attributable to a drop in the quality of targets coming to market that can command the price levels seen as of late.

Private Equity Subscriptions

Subscribe to Quarterly Industry Spotlights

(* = Required fields)

Contact our professionals

Contact us by phone 800.274.3978 or
submit your questions, comments or proposal requests.



Events / Webcasts

IN-PERSON EVENT

Healthcare and Life Sciences Private Equity and Finance Conference

  • February 20, 2019

IN-PERSON EVENT

Timely insights on SBIC trends

  • January 23, 2019

RECORDED WEBCAST

Health care M&A webcast: Latest trends and best practices

  • December 04, 2018

RECORDED WEBCAST

Tax benefits of investing in qualified opportunity zones

  • November 29, 2018