Resource | Baker Tilly Capital Insider
Texas regional M&A update: H1 2024
Introduction
Baker Tilly Capital, LLC’s Texas M&A update provides a recap of middle market transactions (i.e. deals with reported enterprise value between $10 million and $1 billion) with the target company located in Texas.
Transaction activity
Middle market M&A activity in Texas had a steady first half of 2024, which saw 33 transactions. Middle market M&A activity in Texas increased by 18% in H1 2024 relative to H2 2023. The first half of 2024 transactions remained suppressed relative to the latter half of 2023.
The aggregate disclosed value of M&A transactions totaled $8.3 billion during H1 2024. This was a 32% increase from the aggregate disclosed deal value of $6.3 billion in H2 2023.
Transaction valuations
Reported average enterprise value / revenue multiples increased from 1.6x in H2 2023 to 3.2x in H1 2024. Average enterprise value / EBITDA multiples remained flat in H1 2024 relative to H2 2023.
Transaction profiles
Based on the number of closed transactions, strategic buyers remained the most active buyer type in H1 2024 in Texas. During H1 2024, strategic buyers represented approximately 58% of closed transactions with reported data.
Consumer discretionary and energy were the most active sectors during the first half of 2024, accounting for 36% of M&A deals announced. The industrials and information technology sectors made up the third and fourth largest categories, representing 12% each, of the transactions announced during H1 2024. Communication services, financial and healthcare accounted for 9% each of all M&A deals announced in Texas during H1 2024 while utilities and consumer staples each represented the remainder.
Mergers and acquisitions reports
See reports for different industries and regions
Baker Tilly Capital professionals develop mergers and acquisitions (M&A) updates in different industries and regions. These reports provide an overview of M&A activity, including:
- M&A activity by market segment
- Transaction data for middle market M&A activity
- Buyers and targets by location
- Notable transactions closed during the period of the report
