Navigating change and strategic shifts in the Great Lakes region
Baker Tilly Capital, LLC recently released their Great Lakes M&A update report, which highlights the middle market transactions in the Great Lakes states of Illinois, Indiana, Michigan, Minnesota, Ohio and Wisconsin in H1 2023.
Here are some key takeaways from the report:
- The Great Lakes region's middle market M&A landscape encountered a slow start in H1 2023, with both the number of completed transactions and the aggregate disclosed values experiencing a decline compared to the vibrant activity witnessed in H2 2022
- H1 2023 recorded a total of 41 closed middle market M&A transactions, signifying a substantial 35% contraction from H2 2022 and a more modest 9% decrease in comparison to H1 2022
- The cumulative value of middle market M&A transactions in the Great Lakes region reached $6.8 billion for H1 2023. This marked a sharp 49% decrease from H2 2022, and stood as the second lowest H1 semi-annual total over the previous five-year period spanning 2019 to 2023
- Among the states in the region, Illinois remained at the forefront, boasting the highest transaction activity with 12 deals. Notably, Minnesota and Ohio followed closely with 9 and 7 transactions respectively. In contrast, both Indiana and Michigan experienced a subdued period, each concluding only 4 deals
- Strategic buyers maintained their dominant presence during H1 2023, accounting for the entirety—100%—of closed transactions with reported data in the region
- Middle market M&A transactions in H1 2023 within the Great Lakes region were prominently concentrated in three industries — industrials, information technology and healthcare. Collectively, these sectors commanded around 75% of the total middle market M&A activity in the region during the period
