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The Vince Report Middle Market Technology Manufacturing Q4 2023 - Q1 2024 Update

Published on June 4th, 2024




I. Q4 2023 / Q1 2024 Summary

  • Uncertainty regarding this market’s applicability to advanced technologies has provoked volatility in transactions.

  • The U.S. and China trade war hinders M&A activity due to the proposed risk of supply chain liabilities.

  • Declined trends of activity and value in Q1 isn’t indictive of a broader slowdown of M&A throughout 2024.


II. U.S. Middle Market Software M&A Activity - Semiconductors and Electronics A. Trends:

  • Number of transactions and total transaction value decline in Q4 2023 and Q1 2024 YoY.

  • Minimal increase in average transaction value for Q4 YoY and significant decrease in Q1 YoY.

  • Significant decrease in number of transactions and average transaction value between Q1 and Q4.



B.   Reading Between the Lines:

  • Valuation expectations have spiked resulting in an increased valuation gap between buyers and sellers.

  • Increased M&A proclivity is still plausible in 2024 due to the critical role semiconductors and electronics have in advanced technologies like AI, machine learning technologies, and IoT.




C.   Top Five Transactions - Q4 2023 / Q1 2024:
















Sources: Capital IQ and Pitchbook.



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*** The content is not intended to provide legal, financial or M&A advice. It is for information purposes only, and any links provided are for your convenience. Please seek the services of an M&A professional(s) before entering into any M&A transaction. ***

For More Information, Please Contact:

 

As a visionary, influential, and trusted leader, Vince Monteparte has more than 25 years of experience managing strategic and transformative enterprise initiatives, across Aerospace, Transportation, Logistics, and Enterprise / SaaS Software. Advising C-suite executives and Boards of Directors, and helping companies grow from start-up to exit.


Vincent Monteparte, Principal

Tel (619) 379-1785



About Global Capital

 

As a middle market investment banking boutique, Global Capital provides mergers and acquisition advisory services, access to corporate debt and equity capital, and strategic advisory services to successful middle market companies. For over twenty five years, our team has offered companies a unique blend of sophisticated financial expertise and access to the global marketplace of buyers, sellers and financiers.



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