M&A Quarterly - June 2015

June 22, 2015|Ann Hanna, Corey Vanderpoel

Market summary

  • Sell-side market momentum continued in Q12015 evidenced by closed transaction volumes, upward valuation trends and total debt utilized.
  • Transaction volume in Q12015 increased 38% from Q42014. Historically,Q1 volumes are around 25% lower than Q4 of the previous year.
  •  Average EBITDA multiples in Q12015 were 6.8x, up 0.4x from the average for FY2014 for private equity transactions with enterprise values less than $250 million.
  • Platform transactions between $10 and 50 million were 6.2x compared to 8.1x for transactions between $50 and 250 million during Q12015, reflecting an increasing size premium for larger companies.
  • Valuations during Q12015 in the manufacturing, business services, health care services, distribution and technology industries were all up over historic norms.
  • In Q12015, businesses with better financial performance (revenues and margins) transacted at a 31% premium to other businesses.
  • Transactions between $10 and 250 million averaged 3.4x for Senior Debt/EBITDA in Q12015, which was reflected primarily in deals with enterprise values above $50 million.

What’s new at Schenck M&A Solutions

  • April – Michael Schroeder hired as M&A Analyst.
  • April – Engaged by industrial coating company to recapitalize credit facilities.
  • April – Provided calculation of value services to chemical products and services company.
  • April – Commenced sell-side engagement of boutique children’s products manufacturing company.
  • March – Started buy-side engagement for OwnersEdge, Brookfield ESOP holding company, seeking to acquire successful organizations with revenue between $1 and 20 million.
  • March – Advised industrial coating company on sale of certain assets.
  • March – Advised Badger Mining Corporation on acquisition of Northern Frac Proppants.
  • March – Advised Wisconsin Oven Corporation on sale to Thermal Product Solutions.
  • March – Advised Creative Group, Inc. on sale to Direct Travel 

Read the full issue of  Schenck M&A Quarterly>> 


SECURITIES OFFERED THROUGH BURCH & COMPANY, INC., MEMBER FINRA / SIPC. BURCH & COMPANY AND SCHENCK M&A SOLUTIONS ARE NOT AFFILIATED ENTITIES. ANN HANNA AND COREY VANDERPOEL OF SCHENCK M&A SOLUTIONS ARE REGISTERED INVESTMENT BANKING REPRESENTATIVES WITH BURCH & COMPANY.