Michael Mufson, our Principal from Philadelphia, reports the deal activity in the US M&A Middle Market for the year-end of 2021. Read the highlights below.

US M&A Activity Increased 40% By End 2021

For the year ending 12/31/2021, total US M&A activity experienced a 40% increase in total dollar deal
value for reported transactions and the total number of deals reported were up 30% YoY.

  • The largest increase reported were transactions with EV above $1 billion which experienced a 67% increase
    in deal count in 2021

2021 US Middle Market Update

  • Middle market US M&A activity (transactions below $250mm in EV) saw a 22% increase in reported deal
    count in 2021, with associated transactional dollar value increasing 42% YoY.
  • All US M&A valuations below $1 billion in EV for 2021 averaged 8.88x EBITDA vs. 8.97x for in 2020.

US Middle Market Update


The M&A Marketplace Remains Highly Liquid

  • Private Equity Sponsor valuations for deals below $1 billion averaged 13.0x in 2021 vs. 13.9x in 2020.
  • Private Equity Sponsor valuations for deals below $1 billion saw an increase in Q4 2021 to 13.8x, up 0.8x
    from Q3 2021.
  • Total Leverage in PE Sponsor transactions averaged 5.9x in 2021 down from 6.3x in 2020.
  • Equity contributions witnessed an increasing percentage throughout 2021. In Q1, average equity
    contribution was at 47% and by year end, it represented 58%.
  • The M&A marketplace remains highly liquid with well over $800 billion of dry powder in equity funds in
    US PE Sponsors coupled with almost $2 trillion of cash on non-financial corporate balance sheets in the

2021 US Middle Market Update

2022 Outlook: Strong Year for M&A

  • The middle markets are starting to see in greater frequency the larger family and close held-private
    companies coming to market to as the liquidity event to the owners whose demographic of baby boomers
    are coming to retirement age.
  • M&A Credit/Leverage statistics is provided by our New York partner, SPP Capital; You can find the latest Private Capital Market Report here.
  • 2022 should be another strong year for M&A for no other reason than the sheer amount of liquidity
    in the market.
  • The $800B plus dry powder available to PE sponsors, the $2 trillion in corporate cash
    balances exacerbated with both commercial banks and non-regulated debt sources need to employ funds
    thwart the many economic headwinds we are in store for the foreseeable future.

If you have questions or would like to speak to our M&A advisors, feel free to book a call here.

Michael Mufson

Michael Mufson

Michael Mufson has almost 30 years experience as an investment banker to middle market companies. Prior to the founding of Mufson Howe Hunter in 2004, he served as the founder and head of equity capital markets for Commerce Bancorp (now TD Bank).

[email protected]
电话: +1 215-399-5410

里斯 · 亚当斯


里斯·阿德南斯(Reece Adnams)是伊顿广场(Eaton Square)的首席执行官兼全球董事总经理,他是成立于2008年的技术,服务和其他成长型公司的并购与资本服务顾问。

[email protected] 61 03 8199 7911 eatonsq.com