Q1

2024

GLOBAL
M&A Report

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Contents
Overview 4
PitchBook Data, Inc.
Deal metrics 7
John Gabbert Founder, CEO

Valuation metrics 8 Nizar Tarhuni Vice President, Institutional Research and Editorial

Dylan Cox, CFA Head of Private Markets Research

European M&A 9

North American M&A 10 Institutional Research Group

Sector metrics 11 Analysis

A word from Liberty GTS 13 Tim Clarke

Lead Analyst, Private Equity
tim.clarke@pitchbook.com
B2B 15

B2C 17 Garrett Hinds

Senior Analyst, Private Equity
garrett.hinds@pitchbook.com
Energy 19

Jinny Choi
Financial services 21 Senior Analyst, Private Equity
jinny.choi@pitchbook.com
Healthcare 23
Kyle Walters
IT 25 Associate Analyst, Private Equity
kyle.walters@pitchbook.com

Materials & resources 27

Aaron DeGagne
Senior Analyst, Healthcare
aaron.degagne@pitchbook.com

Nicolas Moura, CFA

Analyst, EMEA Private Capital
nicolas.moura@pitchbook.com

Data

TJ Mei
Data Analyst

pbinstitutionalresearch@pitchbook.com

Publishing
Report designed by Drew Sanders and Joey Schaffer

Published on April 23, 2024

Click here for PitchBook’s report methodologies.

3 Q1 2024 GLOBAL M&A REPORT

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Overview
M&A activity
44,156
42,152
40,698

34,120
32,396
32,129 32,062 32,377 31,062
30,723

10,440

$3,175.4 $3,656.4 $3,257.9 $3,113.0 $3,536.2 $3,337.2 $2,787.0 $4,685.7 $3,493.6 $3,076.1 $694.2

2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024*
Deal value ($B) Deal count Estimated deal count
Source: PitchBook • Geography: Global • *As of March 31, 2024

Tim Clarke faster if not for lagging activity among PE buyers. Large LBO
Lead Analyst, Private Equity dealmaking has been stunted by high borrowing costs. Banks
are lending again, but mostly to refinance old PE loans as
Closing out 2023, global M&A had declined for two years opposed to new loans backing new PE deals. In fact, during
straight. M&A has almost always bounded back from Q1 2024, refinancing volume in the US broadly syndicated
consecutive annual declines, and we do not think this year loan (BSL) market was twice that of M&A-related loan
will be any exception. The prior two episodes of 2007-2008 volume to PE-backed issuers. Historically, the reverse has
and 2001-2002 registered total peak-to-trough declines of been true, with sponsor-backed M&A volume exceeding
approximately 60% to 70%, whereas the present decline has refinance volume by a factor of 4-to-1. This can all be easily
measured 34.4% from 2021’s peak. We think we will look back solved, of course, by the long-awaited arrival of rate cuts by
on Q3 2023 as the trough in the current cycle, and Q1 2024 central bankers. However, a new rate cut cycle is proving to
provided some support to that outlook. Against a relatively be elusive. We believe lower base rates are still in the cards
easy comparison a year ago, global M&A activity has risen for 2024, but the delay has turned a V-shaped M&A recovery
by approximately 5% to 10% versus Q1 2023. This was not into a more shallow one, with financial sponsors lagging.
gangbuster volume by any means—and a deceleration from While higher borrowing costs also dull the appetite among
Q4 2023—but an improvement nonetheless. corporate acquirers, they are equally sensitive to signs of a
sharp downturn in the economy, and with that risk quickly
We see the better tone of the last two quarters as a sign receding, we expect that they will continue to lead the way in
that M&A dealmaking is slowly on the mend. It would be an M&A recovery.

4 Q1 2024 GLOBAL M&A REPORT OVERVIEW

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M&A activity by quarter

$1,400 14,000

$1,200 12,000

$1,000 10,000

$800 8,000

$600 6,000

$400 4,000

$200 2,000

$0 0
Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1
2019 2020 2021 2022 2023 2024*
Deal value ($B) Deal count Estimated deal count
Source: PitchBook • Geography: Global • *As of March 31, 2024

North American M&A deal activity with European M&A deal activity with
non-North American acquirer non-European acquirer
1,662 2,159
1,678
1,308 1,448 2,077
1,654
1,680
1,327 1,326 1,311 1,240
1,251 1,246 1,074 1,773 1,597 1,706
1,663 1,415

275
345
$71.2

$31.0
$509.8

$308.7

$403.2
$428.9

$283.4

$368.4
$276.5

$328.2
$253.3
$376.9

$323.6

$355.6
$271.5

$412.3

$421.6
$261.0
$241.3

$331.7

$261.9
$311.5

2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024* 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024*
Deal value ($B) Deal count Deal value ($B) Deal count
Source: PitchBook • Geography: North America • *As of March 31, 2024 Source: PitchBook • Geography: Europe • *As of March 31, 2024

5 Q1 2024 GLOBAL M&A REPORT OVERVIEW

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M&A megadeal EV/revenue multiples M&A EV/revenue multiples on deals

below $100M
6x 5.6x 5.6x 1.6x
5.5x

1.4x 1.4x
5x 4.3x 1.3x
4.2x
1.2x 1.1x
1.2x 1.1x 1.1x 1.1x 1.1x
4.0x 1.1x
3.9x 1.0x 1.0x
4x 3.7x 3.5x
3.3x 3.3x 1.0x

3x 0.8x

0.6x
2x
0.4x

1x
0.2x

0x 0.0x
2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 TTM* 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 TTM*
Source: PitchBook • Geography: North America and Europe Source: PitchBook • Geography: North America and Europe
*As of March 31, 2024 *As of March 31, 2024
Note: Megadeals are deals that are $5 billion or larger.

After seven straight years of cross-border M&A activity in While multiples are still 15% to 20% removed from 2021’s all-
favor of Europe, net flows have finally turned positive for North time peak of 11.0x of EBITDA and 2.1x of revenue, the extended
America. We could see the momentum fading throughout 2023, firming trend indicates that a valuation reset may now be
following a record 2022 when cross-border acquirers accounted complete. Present multiples have come to rest slightly below
for 26.7% of all M&A in Europe, or $281.6 billion gross and the pre-COVID-19 average from 2017 to 2019, which goes to
$106.6 billion net after offsetting flows to North America. That reason given that interest rates are currently much higher.
record share was reached as the dollar gained 20% to 30% Both North America and Europe fell by similar degrees, with
against the euro and pound sterling, providing US acquirers with the latter bottoming at slightly lower multiples but also from
more buying power. Adding fuel to the fire, European targets a lower high. The median EV/revenue multiple in Europe
were consistently priced lower at an average discount of 14.8% currently stands at a trailing 12-month (TTM) median of 1.5x
during the same span. However, the dollar rally fizzled in late revenue, or roughly 20% below the North American multiple of
2022, and net flows to Europe have diminished ever since. More 1.9x revenue. The gap in EV/EBITDA multiples is tighter at 9.4x
recently, prospects for the US economy have brightened relative for Europe and 9.7x for North America.
to other regions. The combination of better growth at home and
less purchasing power abroad has stemmed the tide of US M&A At the same time that M&A multiples have moved sideways,
capital to European shores, at least for the time being. public trading multiples continue to rise. As measured by S&P
500 companies, trading multiples surged by nearly 10% in 2023
Valuations and roughly 5% in Q1 2024 to a median of 15.4x EBITDA and
4.0x revenue. Meanwhile, M&A deal multiples, albeit on mostly
North America and Europe transaction multiples moved much smaller private companies, have remained relatively flat
sideways in Q1 2024, extending the stable trend that at a TTM median of 9.5x EBITDA and 1.7x revenue. Historically,
characterized most of 2023. The median EV/EBITDA multiple a bull-whip effect has taken hold of M&A multiples, propelling
for M&A transactions announced or closed in Q1 2024 was them higher and narrowing the gap with public multiples.
relatively unchanged at 9.4x versus 9.5x in 2023. EV/revenue We expect that the widening gap between public and private
multiples were also unchanged at a median of 1.6x in Q1 2024, markets will eventually pry open a tight IPO window. Better
which was identical to 2023’s median. sentiment in public markets often ushers in or reinforces an
M&A recovery, as it sets the tone for would-be sellers.

6 Q1 2024 GLOBAL M&A REPORT OVERVIEW

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Deal metrics
M&A count by acquirer type M&A value ($B) by acquirer type
36.1% 35.2% 34.3% 41.9%
32.7% 33.2% 33.4%
31.3% 44.0%
39.9%
27.8% 35.2%
26.8%
23.0% 35.0% 32.3% 35.6% 33.1%
23.0% 25.0% 27.6%
25.8%

$2,722.8
28,214

$1,956.4
27,310

$229.7 $464.5
4,882

$1,850.2
24,243

$2,394.6

$2,149.5
$2,024.1
$2,678.2

$1,806.8
20,756
21,793

$2,357.7
22,241

$2,355.7
23,163
24,096
26,264
7,057 23,666

2,445

$1,088.8

$1,225.9
$1,962.9

$1,537.2
$1,187.7
$1,141.6
$900.2
10,584

10,306

14,842

$978.2
15,942

$980.1
12,633

$819.7
10,155
8,899
8,033
7,856

2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024* 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024*

Sponsor backed Corporate M&A Sponsor-backed % Sponsor backed Corporate M&A Sponsor-backed %
Source: PitchBook • Geography: Global • *As of March 31, 2024 Source: PitchBook • Geography: Global • *As of March 31, 2024

Share of M&A count by sector Share of M&A value by sector

100% Materials & resources 100% Materials & resources
90% IT 90% IT

80% Healthcare 80% Healthcare

70% Financial services 70% Financial services

60% Energy 60% Energy

50% B2C 50% B2C

40% B2B 40% B2B

30% 30%

20% 20%

10% 10%

0% 0%
2014
2015
2016
2017
2018
2019
2020
2021
2022
2023
2024*

2014
2015
2016
2017
2018
2019
2020
2021
2022
2023
2024*

Source: PitchBook • Geography: Global • *As of March 31, 2024 Source: PitchBook • Geography: Global • *As of March 31, 2024

7 Q1 2024 GLOBAL M&A REPORT DEAL METRICS

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Valuation metrics
Median M&A EV/EBITDA multiples Median M&A EV/revenue multiples
11.0x 2.5x
11x
2.1x
10.0x 9.5x
10x 9.7x 9.7x 9.7x 2.0x
8.9x 9.5x 9.5x 1.7x 1.7x 1.6x
9.2x 1.6x 1.7x
9.0x 1.6x 1.6x
1.5x 1.5x
9x 1.4x
1.5x

8x
1.0x
7x

0.5x
6x

5x 0.0x
2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 TTM* 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 TTM*
Source: PitchBook • Geography: North America and Europe Source: PitchBook • Geography: North America and Europe
*As of March 31, 2024 *As of March 31, 2024

Public company trading multiples versus M&A Public company trading multiples versus M&A
multiples (EV/EBITDA) multiples (EV/revenue)
18x 5x
15.4x
16x
14.7x 4.0x
14x 4x 3.8x

12x
9.5x 3x
10x 9.5x

8x
2x 1.7x
1.6x
6x

4x
1x
2x

0x 0x
2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024* 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024*
M&A EV/EBITDA S&P 500 EV/EBITDA (median) M&A EV/revenue S&P 500 EV/revenue (median)
Source: PitchBook • Geography: North America and Europe Source: PitchBook • Geography: North America and Europe
*As of March 31, 2024 *As of March 31, 2024

8 Q1 2024 GLOBAL M&A REPORT VALUATION METRICS

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European M&A
M&A activity
17,330 17,128 17,341

13,403
12,805 12,689 12,472 12,754
12,033
11,698

4,594

$965.1 $1,017.7 $838.0 $996.6 $1,075.3 $975.2 $808.6 $1,380.3 $1,056.0 $886.4 $166.4

2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024*
Deal value ($B) Deal count Estimated deal count
Source: PitchBook • Geography: Europe • *As of March 31, 2024

Nicolas Moura, CFA Elsewhere, we continue to see a consolidation in financial

Analyst, EMEA Private Capital services play out, stemming from the higher-interest-
rate regime that is slowly unmasking firms that were less
Q1 2024 marked Europe’s weakest quarter of M&A deal financially sound. Particularly in the UK, we saw Nationwide
value since the COVID-19 lockdowns of Q2 2020. Deal value Building Society buy Virgin Money UK and Barclays buy
in Q1 was down 12.1% YoY and 26.2% QoQ as M&A appetite Tesco Bank, while wealth manager Mattioli Woods was
declined further. This is somewhat surprising as we expect snapped up by PE.
a rebound in 2024 to materialize as monetary policy starts
easing. The weak start of the year may well prove to be the The IT sector was the only sector with sequential growth in
trough in M&A deal value as the year progresses. Q1 saw a Q1 in Europe, with deal value up 73.7% YoY and 24.3% QoQ.
lack of megadeals compared to previous quarters, with only We have often talked about how tech valuations fell the most
two megadeals above €5 billion. The first was the acquisition out of any sector in the previous two years as interest rates
of Vodafone Italia by Swisscom for $8.7 billion. The European increased, but we have now pivoted and are seeing increased
telecom sector has seen a wave of consolidation lately with M&A activity in the sector, especially as we enter a new cycle
MásMóvil merging with Orange’s Spanish business as well as of innovation spearheaded by AI.
Vodafone selling its Spanish unit to Zegona Communications.
The second megadeal saw Russian tech company Yandex, M&A is currently being affected by a push-and-pull effect.
which is incorporated in the Netherlands, sold in a On the one hand, higher borrowing costs make it more costly
controversial manner to a Russian consortium for a heavily to finance large acquisitions, pulling M&A appetite down. On
discounted $5.3 billion. Under current Kremlin rules, foreign the other hand, the lack of public listings and a correction in
assets must be sold at a discount of at least 50% of fair value. valuations play in favor of M&A. Nonetheless, we expect the
Yandex had been valued at $30 billion just before the Russia- pipeline of deals to grow in anticipation of lower rates, which
Ukraine war.1 will give a boost to M&A activity in future quarters.

1: “Yandex Owner to Exit Russia in $5.2 Billion Deal,” Reuters, Alexander Marrow, Darya Korsunskaya, and Polina Devitt, February 5, 2024.

9 Q1 2024 GLOBAL M&A REPORT EUROPEAN M&A

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North American M&A

M&A activity
20,586

18,647
16,814
15,354
15,130 14,649
14,900
13,872 14,258
13,709

4,204

$1,742.3 $2,045.0 $1,914.6 $1,609.6 $2,002.9 $1,829.8 $1,511.4 $2,639.8 $1,922.9 $1,776.5 $464.1

2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024*
Deal value ($B) Deal count Estimated deal count
Source: PitchBook • Geography: North America • *As of March 31, 2024

Garrett Hinds top deals were financial services and IT, each with three
Senior Analyst, Private Equity transactions, followed by energy with two deals, and one deal
each in healthcare and business services. Additionally, two
In the first quarter of 2024, North America’s M&A landscape PE sponsor-backed deals made it into the top 10, marking an
held despite the persistently challenging dealmaking increase from none in the prior quarter.
conditions. The total M&A value for Q1 totaled $464.1
billion, marking a robust increase of 9.7% YoY, yet this was a The largest transactions in Q1 spanned the financial, IT, and
decline sequentially of 18.4% QoQ, partially due to seasonal energy sectors. Capital One’s acquisition of Discover for
factors. When we shift our focus to the volume of deals, we $35.3 billion in an all-stock deal is poised to establish a global
identify modest softness—the quarter recorded 4,204 deals, payments platform serving over 100 million customers and 70
reflecting a decline of 2.0% YoY and a 4.0% QoQ. Looking million merchant acceptance points across 200 countries and
ahead, the potential for lower rates later in 2024, contingent territories. 2 In the technology sector, Synopsys’ acquisition
on moderating inflation data, instills optimism for a potential of Ansys for approximately $35 billion in cash and stock aims
rebound in deal activity in the second half of the year. to create an integrated software platform facilitating the
design of complex systems from semiconductors to complete
The top 10 North American deals in Q1 totaled $189.6 billion, products. Lastly, in energy, Diamondback Energy’s merger
showing a significant increase of 54.6% YoY yet a decline of with Endeavor Energy Resources, valued at approximately $26
11.8% QoQ. Notably, two historic energy deals contributed billion in stock and cash, is set to form a scaled, independent
$124.5 billion to the Q4 2023’s value figures, creating a Permian Basin oil & gas producer, with management
tough comparison. Sectors prominently represented in the anticipating $550 million of run-rate synergies.

2: “Capital One to Acquire Discover,” Capital One, February 19, 2024.

10 Q1 2024 GLOBAL M&A REPORT NORTH AMERICAN M&A

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Sector metrics
Tim Clarke healthcare registered the worst deal momentum scores
Lead Analyst, Private Equity of -0.54 and -0.30. This is despite the fact that these two
sectors racked up the largest deals of the quarter, including
Jinny Choi Discover, Truist Insurance, and Catalent, which combined for
Senior Analyst, Private Equity more than $65 billion in value. However, because these scores
remove outlier deals, they indicate that deal momentum
Momentum score methodologies in these two sectors is weak and getting weaker below
the surface.
Our cross-sector momentum scores provide insight into
how changes in M&A deal activity and median valuations Our valuation momentum scores reflect each sector’s relative
compare across sectors. The scores range from -2.0 to 2.0 and strength to overall M&A multiple trends using TTM rates of
establish a relative evaluation for each sector. The basis of change to the prior year (EV/EBITDA and EV/revenue).
these scores is the percentage change over the prior quarter
and TTM period, which are equally weighted. In the case of Energy and IT fared best on the back of slightly expanding
the valuation score, just the TTM change is considered versus multiples and registered valuation momentum scores of 1.02
the prior calendar year, using both EV/EBITDA and EV/revenue and 0.72, respectively. Conversely, the materials & resources
multiples. The deal momentum scores encompass both deal sector saw a continued slide in multiples and registered a
count and volume, which are also equally weighted. Prior to score of -0.97. More than half of the sectors achieved positive
calculating deal volume growth rates, the data is winsorized— momentum scores as valuations continue to improve,
meaning it is clipped—at the 98th percentile to mitigate the albeit slowly.
impact of outliers. To establish the final sector momentum
scores, we employ Z-score calculations using the mean and Taken together, deal and valuation momentum scores point to
standard deviation of the cross-sector growth rates. a transition in market dynamics. In Q4 2023, there was better
deal activity in sectors where multiples were still falling.
Sector overview This quarter provided evidence of buyers chasing multiples
higher or attempting to steer clear of value traps. Materials
As detailed above, our deal momentum scores reflect each & resources is an example of the latter. Deal momentum was
sector’s relative strength to overall M&A deal flow using solidly positive in Q4 2023 but turned slightly negative in Q1
three-month and 12-month rates of change (in deal count and 2024. In financial services, deal momentum has deteriorated
deal value). even as multiples have also headed lower. 3 Meanwhile,
tech, which had the worst deal momentum in Q4 2023, saw
Energy repeated as the strongest sector in Q1 2024, scoring its score become slightly positive despite stubbornly high
0.49. The energy sector’s outperformance was mostly valuations. In energy, also one of the cheapest sectors but
driven by the slew of deal activity both in traditional oil & gas one where multiples have been expanding for some time, deal
and energy-transition companies. Also of note is IT. Short- momentum accelerated even as valuations continue to rise.
term deal activity in the tech sector was relatively strong, We take this as another sign of an M&A market that is on the
and it improved from having the weakest score in Q4 2023 mend with an acquirer mindset that is accepting more risk
to marginally positive this quarter. Financial services and and higher prices.

3: This figure excludes banks due to the irrelevance of EV/EBITDA multiples.

11 Q1 2024 GLOBAL M&A REPORT SECTOR METRICS

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Deal momentum score* Valuation momentum score*

B2B 0.14 B2B -0.62

B2C 0.09 B2C 0.08

Energy 0.49 Energy 1.02

Financial services -0.54 Financial services -0.67

Healthcare -0.30 Healthcare 0.45

IT 0.11 IT 0.72

Materials & resources 0.01 Materials & resources -0.97

-0.8 -0.3 0.2 0.7 -1.10 -0.60 -0.10 0.40 0.90

Source: PitchBook • Geography: Europe and North America Source: PitchBook • Geography: Europe and North America
*As of March 31, 2024 *As of March 31, 2024

Sector stack by deal value ($B)* Sector stack by deal multiples (EV/revenue)*

B2B 2023 B2B 2023

TTM TTM
B2C B2C

Energy Energy

Financial services Financial services

Healthcare Healthcare

IT IT

Materials & resources Materials & resources

$0 $200 $400 $600 $800 0x 1x 2x 3x 4x

Source: PitchBook • Geography: Europe and North America Source: PitchBook • Geography: Europe and North America
*As of March 31, 2024 *As of March 31, 2024

12 Q1 2024 GLOBAL M&A REPORT SECTOR METRICS

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A WORD FROM LIBERTY GTS

Explore the surge in third-party R&W claims
Explore the surge in third-party representations &
warranties claims Jared Evans
Claims Counsel, Liberty GTS

Jared Evans, Claims Counsel, Liberty GTS

Jared is a Claims Counsel at Liberty GTS,
where he focuses on handling transactional
Over the past year, there has been a noticeable increase liability claims in the Americas region.
in notifications involving third-party claims made under
representations & warranties (R&W) policies, highlighting a
growing trend with significant implications for insurers and
dealmakers alike. This article explores the drivers behind the Intellectual property and wage & hour disputes on the rise
surge in third-party claims and offers insights into navigating
the challenges they pose. We are witnessing a notable uptick in two categories of
third-party claims: intellectual property (IP) disputes and
In the context of R&W policies, a third-party claim arises wage & hour class action lawsuits. IP disputes, in particular,
when someone outside of the M&A transaction asserts are aggressively pursued, with plaintiffs protective of their
allegations against the target company, which, if true, would IP rights due to the competitive advantage they confer and
constitute a breach of a covered representation. In our recent the substantial resources invested in their development.
Claims Briefing, we reported that, in 2023, over half—56%— These claims entail substantial litigation costs given the high
of non-tax-related notifications involved third-party claims, counsel fees coupled with the fact that these matters are not
up from 49% in the previous year. This trend is particularly easily disposed of by early motion practice. Indeed, we have
noticeable in the Americas where class action lawsuits are handled several IP claims where the target company is likely
commonplace. Alongside the increase in frequency, we have to incur more than $5 million in defense costs and achieving
also seen an increase in the size of these claims, primarily due a sensible settlement is proving to be difficult given the
to soaring defense costs. Indeed, one of our largest payments entrenched position of the plaintiff.
to date relates to a third-party claim wherein we paid out
nearly $30 million, some $20 million of which was purely for Another factor fueling the increase in IP claims, particularly in
defense costs. the Americas, is the rise of “patent trolls,” who exploit patent
litigation for settlements based on (often) frivolous claims. We
This upward trend in defense costs is exacerbated by the find patent trolling to be less prevalent in Europe, the Middle
macroeconomic climate and inflationary pressures, prompting East, and Africa, likely due to the loser-pays-costs regime.
law firms to increase their hourly rates. The law firms used to
defend third-party claims are oftentimes preapproved in R&W The story is similar with wage & hour suits. Frequently venued in
policies—with their rates deemed reasonable—but it is not California, where the laws and courts are believed to be largely
always the case that the preapproved firm will be the most employee-friendly, these cases are also not easily resolved via
suitable or cost-effective choice. dispositive motions, and with plaintiffs’ lawyers commonly
working on contingency-fee arrangements, nuisance-value
The result is that it is becoming more common for defense settlement offers are generally rejected. There is also a legal
costs to materially erode or exhaust retentions—a trend that system abuse risk associated with these claims, raising the
is likely to be exacerbated by the pressure that retentions have possibility for outsized jury awards. Finally, we often find that
come under recently—coupled with the fact that third-party the target’s business-as-usual insurance program seldom
claims frequently arise after the retention drop-down date, provides coverage, as it generally excludes wage & hour claims
when the retention is generally halved one year after closing. (save for the occasional minimal sublimit for defense costs).

13 Q1 2024 GLOBAL M&A REPORT A WORD FROM LIBERTY GTS

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We are also keeping a watchful eye on other areas in which Moreover, during their risk and insurance due diligence on a
we believe the volume and severity of third-party claims target company, insureds must comprehensively understand
may increase in the future, particularly contractual disputes the existing insurance program’s scope and limitations,
between the target company and its customers and suppliers ensuring it adequately addresses key risks.
as well as government investigations into past business
practices. The latter cases, to date, are most frequently seen As a final note, we emphasize the critical importance
in the healthcare sector in the United States, where Stark law of an insurer receiving prompt notice of a third-party
violations—prohibiting physician self-referrals—are the basis claim and having the ability to closely associate in the
for a number of claims. defense. Our experience underscores that by maintaining
an active dialogue regarding a claim’s status and any key
Navigating the challenges developments, an insurer is able to expeditiously reach a
coverage determination—frequently aligning the interests
As exposure to third-party claims becomes more frequent, of both the carrier and the insured in contesting the third-
we anticipate that R&W insurance carriers will apply more party claim—and assess the reasonableness of any key
scrutiny at the underwriting stage around litigation risk strategic decisions or settlement proposals. While rare, we
in general. They will also start to take increasingly robust have encountered instances where third-party claims were
positions in respect of any potential exposures that are noticed after the dispute had already been settled. Delayed
identified during due diligence, even if it is classified as being notification complicates the claims process, especially if key
a low-risk item. This may mean that insureds may have to decisions have already been made.
look at alternative ways of managing these risks, such as via
a bespoke contingent legal risk insurance policy (a product We foresee third-party claims—given the wide range
which is designed to derisk one-off identified low-risk issues). of underlying circumstances—continuing to make-up a
substantial portion of R&W notifications in the years ahead.
R&W policies typically sit excess to any other valid, applicable, With a comprehensive understanding of the evolving
and collectible insurance coverage. Hence, insureds should landscape of third-party claims, Liberty GTS is well positioned
avoid relying on R&W insurance in the first instance to to help our insureds navigate the various complexities and
address claims typically covered by other available insurance. challenges that arise from these disputes.

14 Q1 2024 GLOBAL M&A REPORT A WORD FROM LIBERTY GTS

 Sponsored by

B2B
B2B M&A activity by quarter
$350 5,000
4,500
$300
4,000
$250 3,500
3,000
$200
2,500
$150
2,000

$100 1,500
1,000
$50
500
$0 0
Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1
2019 2020 2021 2022 2023 2024*
Deal value ($B) Deal count Estimated deal count
Source: PitchBook • Geography: Global • *As of March 31, 2024

Jinny Choi B2B M&A activity

Senior Analyst, Private Equity
16,170
15,463 15,371
B2B is off to a steady start: The B2B sector fared slightly
better than the broader global M&A market, which
12,484
experienced a quarterly decline of 4.9% in estimated deal 11,311 11,768 11,580 11,890 11,869 10,767
count and a decline of 22.0% in deal value. In comparison,
there were an estimated 4,290 B2B deals for an aggregate
of $157.6 billion in Q1 2024, which were 4.6% and 18.2%
less, respectively, than the sector’s activity in Q4 2023. B2B 4,290
remains the largest portion of global M&A activity, accounting

$157.6
for an average of 24.5% of the quarterly global M&A value
and an average of 37.0% of M&A count since the start of
2021. Despite the market volatility of the past couple of years,
$1,179.3
$798.4
$770.5

$562.6
$772.3

$679.8

$779.5
$815.4
$634.1
$641.1

B2B had the third-lowest variability in its share of quarterly

M&A value, demonstrating the sector’s stability against
other sectors. B2B was one of the three sectors that showed 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024*
positive deal momentum two quarters in a row.
Deal value ($B) Deal count Estimated deal count
Source: PitchBook • Geography: Global • *As of March 31, 2024

15 Q1 2024 GLOBAL M&A REPORT B2B

 Sponsored by

B2B M&A EV/EBITDA multiples B2B M&A EV/revenue multiples

10x 9.5x 1.6x 1.5x
9.1x
8.7x 8.9x 8.8x
9x 8.3x 8.5x 8.4x
7.8x 1.4x
7.9x 7.4x
8x 1.1x 1.2x 1.2x
1.2x 1.1x
1.1x
7x
1.0x 1.0x
1.0x
6x 1.0x

5x 0.8x

4x
0.6x
3x
0.4x
2x

1x 0.2x

0x 0.0x
2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 TTM* 2014 2015 2016 2019 2020 2021 2022 2023 TTM*
Source: PitchBook • Geography: North America and Europe Source: PitchBook • Geography: North America and Europe
*As of March 31, 2024 *As of March 31, 2024

Corporate acquirers push into building products and The second largest deal was Japanese residential
construction megadeals: The top four deals during the construction firm Sekisui House’s acquisition of US
quarter were all acquisitions in residential and commercial homebuilder MDC Holdings for $4.9 billion. The other two
building service industries by corporations, accounting for a large deals were Owens Corning’s $3.9 billion acquisition of
whopping $30.9 billion in aggregate. More than half of that door systems provider Masonite to strengthen its position
was The Home Depot‘s acquisition of SRS Distribution for in building and construction materials and WillScot Mobile
$18.3 billion, which was announced in the last week of March. Mini’s $3.8 billion acquisition of McGrath RentCorp, a B2B
The deal will expand The Home Depot’s service offerings in rental company. Amid economic uncertainty, market leaders
specialty trade distribution and increase the company’s total are making strategic acquisitions to bolster their capabilities
addressable market by $50 billion to approximately $1 trillion. and gain higher-growth businesses. The deals enable
The deal also represented the fourth largest PE exit ever and acquirers to expand into high-revenue business areas, expand
a huge windfall for seller Leonard Green & Partners, which into new geographies, and increase their market positions.
acquired the company in 2018 for $3 billion.

16 Q1 2024 GLOBAL M&A REPORT B2B

 Sponsored by

B2C
B2C M&A activity by quarter
$300 3,000

$250 2,500

$200 2,000

$150 1,500

$100 1,000

$50 500

$0 0
Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1
2019 2020 2021 2022 2023 2024*
Deal value ($B) Deal count Estimated deal count
Source: PitchBook • Geography: Global • *As of March 31, 2024

Jinny Choi B2C M&A activity

Senior Analyst, Private Equity
8,674 8,849
8,568
7,590
Smaller deals trend in the face of prolonged macroeconomic 6,545
headwinds: B2C M&A value faltered in Q1 2024, hitting a new 6,852 6,491
6,842
low since the height of the COVID-19 pandemic. There were 6,703
an estimated 2,418 deals for an aggregate of $82.7 billion
during the quarter, which was a QoQ decrease of 32.9% for 6,114
deal value despite a 2.2% uptick in deal count. With financing
costs still high, buyers continued to turn toward smaller
acquisitions, driving down B2C deal value for the second
consecutive quarter. Although this is just for the first three 2,418
months of the year, both the median and average deal sizes $82.7
dropped to record lows of $12.6 million and $172.5 million,
$680.8

$460.6
$690.2

$550.4

$586.9
$766.3

$477.4
$647.3

$821.5
$721.9

respectively. High inflation and interest rates also dampened

B2C M&A activity by weakening consumer sentiment and
spending, which impact profitability and growth prospects 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024*
for B2C companies. Market participants remain hopeful the
Deal value ($B) Deal count Estimated deal count
macro conditions will improve and lift M&A activity in 2024.
Source: PitchBook • Geography: Global • *As of March 31, 2024

17 Q1 2024 GLOBAL M&A REPORT B2C

 Sponsored by

B2C M&A EV/EBITDA multiples B2C M&A EV/revenue multiples

12x 1.6x 1.5x 1.5x
11.0x
10.7x
10.3x 10.2x 1.4x
9.8x 9.9x
9.5x 9.4x 1.4x 1.3x
10x 1.2x 1.2x
8.6x 8.8x
8.4x 1.2x 1.1x 1.1x 1.1x
8x
1.0x

6x 0.8x

0.6x
4x
0.4x
2x
0.2x

0x 0.0x
2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 TTM* 2014 2015 2016 2019 2020 2021 2022 2023 TTM*
Source: PitchBook • Geography: North America and Europe Source: PitchBook • Geography: North America and Europe
*As of March 31, 2024 *As of March 31, 2024

A decline in traditional media drives M&A activity in Leisure deals continue thanks to travel demand: A handful
pursuit of growth: There were several sizable media deals as of hotel and resort deals occurred in Q1 as consumers
companies utilized divestitures and M&A to better position maintained an appetite for travel in the current economic
themselves in an evolving industry. The largest B2C deal in market. In the UK, London-based PE real estate manager
Q1 was Viacom18 Media’s $3.9 billion purchase of 60% of The Henderson Park acquired the luxury Arizona Biltmore hotel
Walt Disney Company’s Indian streaming and TV business. for $705.0 million, and another London-based real estate firm,
The deal allows Disney to keep a foothold in a market Lifestyle Hospitality Capital Group, acquired a majority stake
segment it struggled in after losing the Indian Premier League in Irish hotel group Dean Hotel Group for $382.5 million. In the
digital rights to Viacom18 back in 2022. In February, RedBird US, Hilton Worldwide Holdings announced its acquisition of
IMI announced its acquisition of the UK’s largest TV producer Graduate Hotels for $210.0 million. Hilton will be in charge of
All3Media for $1.5 billion from Warner Bros. Discovery and brand development and franchising of Graduate Hotels, which
Liberty Global. The deal provides RedBird IMI with over 50 provides exposure to locations near university towns in the US
production banners across numerous countries as demand and the UK.
for global content grows.

18 Q1 2024 GLOBAL M&A REPORT B2C

 Sponsored by

Energy
Energy M&A activity by quarter
$250 500
450
$200 400
350
$150 300
250
$100 200
150
$50 100
50
$0 0
Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1
2019 2020 2021 2022 2023 2024*
Deal value ($B) Deal count Estimated deal count
Source: PitchBook • Geography: Global • *As of March 31, 2024

Kyle Walters Energy M&A activity

Associate Analyst, Private Equity
1,453 1,410
1,368
1,264 1,410
Energy M&A comes back down to reality: The energy sector
1,183
is coming off of its best-ever recorded quarter in Q4 2023, 1,145 1,128
when it posted $201.0 billion in deal value. While Q1 deal 1,048 994
value has fallen below the record-setting fourth quarter of
2023, it remains well above the four quarters recorded from
Q4 2022 to Q3 2023. The first quarter wrapped with 394
deals announced or closed, adding to a total value of $86.0
billion. Median deal size within the energy sector has reached
394
a new peak, increasing to $99.4 million in the first quarter
of the year.
$278.0

$394.9
$395.5

$253.6
$324.7
$332.5

$335.3

$160.9

$270.1

$351.6

$86.0

2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024*
Deal value ($B) Deal count Estimated deal count
Source: PitchBook • Geography: Global • *As of March 31, 2024

19 Q1 2024 GLOBAL M&A REPORT ENERGY

 Sponsored by

Energy M&A EV/EBITDA multiples Energy M&A EV/revenue multiples

9x 8.4x 8.6x 3.0x

8.1x 3x
8x 7.2x 7.4x
2.4x 2.5x
6.8x 6.7x 2.3x
7x 6.3x 6.3x 2.2x
5.4x 2.0x 2.0x
6x 2x 1.8x 1.7x
4.1x
5x

4x

3x 1x

2x

1x

0x 0x
2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 TTM* 2014 2015 2016 2019 2020 2021 2022 2023 TTM*
Source: PitchBook • Geography: North America and Europe Source: PitchBook • Geography: North America and Europe
*As of March 31, 2024 *As of March 31, 2024

Consolidation in oil & gas continues to boost deal activity: The wind-farm industry headlined renewable energy M&A
In February, Diamondback Energy agreed to acquire Endeavor activity in Q1: Renewable energy M&A has accounted for a
Energy Resources for $26.0 billion. The combination will growing portion of all energy deals in recent years. In March,
create a premier Permian-independent operator valued at KKR agreed to take German electricity and energy producer
more than $50 billion. The deal would see the combined Encavis private for $3.0 billion. Encavis operates 40 onshore
company pumping up to 816,000 barrels of oil equivalent wind farms and 190 solar farms across Europe, providing over
per day and annual synergies of $550.0 million, coming up 2.2 million households with renewable energy. Through the
to more than $3 billion in net value over the next decade.4 In takeover, KKR will increase Encavis’ contribution to the green
January, Chesapeake Energy agreed to acquire Southwestern energy transition in Europe. Similarly, Stonepeak agreed to
Energy for $7.4 billion. The combined company will have the acquire a 50% stake in Dominion Energy’s Coastal Virginia
production capacity of about 7.9 billion cubic feet equivalent Offshore Wind (CVOW) project for $3.0 billion. The project
and become the largest independent US natural gas producer. is expected to be the largest offshore wind farm in the US
The deal will lead to annual operational and overhead and one of the largest offshore wind farms globally upon
synergies of approximately $400 million through improved completion. When fully constructed, each year, CVOW will
capital efficiencies and operating margins driven by longer avoid carbon emissions equivalent to removing 1 million cars
laterals; lower drilling and completion costs; general and from the road.6
administrative cost reductions; and the utilization of shared
operational infrastructure. 5

4: “Diamondback Sets $26 Billion Deal for Shale Oil Rival Endeavor Energy,” Reuters, Seher Dareen and Arunima Kumar, February 12, 2024.
5: “Chesapeake Energy Corporation and Southwestern Energy to Combine to Accelerate America’s Energy Reach,” Chesapeake Energy, January 11, 2024.
6: “Stonepeak to Acquire 50% Interest in Dominion Energy’s Coastal Virginia Offshore Wind Project,” Stonepeak, February 22, 2024.

20 Q1 2024 GLOBAL M&A REPORT ENERGY

 Sponsored by

Financial services
Financial services M&A activity by quarter
$300 1,000
900
$250
800
700
$200
600
$150 500
400
$100
300
200
$50
100
$0 0
Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1
2019 2020 2021 2022 2023 2024*
Deal value ($B) Deal count Estimated deal count
Source: PitchBook • Geography: Global • *As of March 31, 2024

Kyle Walters Financial services M&A activity

Associate Analyst, Private Equity
2,601 3,358 3,263 3,302

Financial services quarterly deal activity sees an uptick: For 2,888

nearly two years, financial services M&A deal value remained 2,666 2,688 2,623 2,551
2,503
relatively flat, averaging $81.2 billion in quarterly deal value
over the past seven quarters. The sector broke out of that rut in
the first three months of 2024, posting an estimated 734 deals
worth $96.4 billion. The increase in deal value was supported
by three megadeals, each exceeding the $10 billion mark.

Fintech captures the sector’s largest deal since 2019: 734

Financial services was home to the largest deal of the
quarter, belonging to Capital One’s $35.3 billion acquisition
$384.8
$568.4
$588.3
$545.8

$428.5

$334.0
$389.0

$392.9
$375.9

$291.5

$96.4

of Discover. The acquisition allows Capital One to leverage

Discover’s robust payments network and compete with the
largest payment networks and payment companies in the US. 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024*
Some companies act as card issuers and others as payment
Deal value ($B) Deal count Estimated deal count
processing networks—Discover can do both. Presently, Capital
Source: PitchBook • Geography: Global • *As of March 31, 2024
One relies on Visa and Mastercard networks for payment
processing, but it plans to move all of its debit cards and some
of its credit cards to Discover’s network starting in Q2 of 2025.7

7: “Investor Presentation,” Capital One, February 20, 2024.

21 Q1 2024 GLOBAL M&A REPORT FINANCIAL SERVICES

 Sponsored by

Financial services M&A EV/EBITDA multiples Financial services M&A EV/revenue multiples
13.9x 3.9x 4.0x
13.6x 4x 3.8x
14x 13.1x
12.5x
12.1x 3.5x
11.7x 11.6x
12x 10.9x 3.0x
3.0x 3.1x
9.9x 8.9x 2.9x
9.1x 3x 2.5x
10x

8x
2x
6x

4x
1x

2x

0x 0x
2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 TTM* 2014 2015 2016 2019 2020 2021 2022 2023 TTM*
Source: PitchBook • Geography: North America and Europe Source: PitchBook • Geography: North America and Europe
*As of March 31, 2024 *As of March 31, 2024

The insurance industry was active in Q1: In the first quarter Expansion into alternative asset classes drives deal flow:
of the year, the insurance industry accounted for 37.8% of all The third deal over $10 billion belongs to BlackRock’s $12.5
financial services deals. Leading the charge was the sale of billion acquisition of Global Infrastructure Partners. This
Truist Insurance Holdings (TIH) to Clayton, Dubilier & Rice represents the largest deal ever in the alternatives space
and Stone Point Capital for $15.5 billion in enterprise value and is BlackRock’s largest since 2009 when it consolidated
($12.4 billion in deal value). The sale allows TIH to strengthen its position in the exchange-traded fund (ETF) business in a
its balance sheet and provides the firm significant flexibility $13.5 billion deal with Barclays Global Investors. This marks
to invest in its core banking franchises. Stone Point and BlackRock’s fourth acquisition in the infrastructure space—
Clayton, Dubilier & Rice offer deep industry and operational the others involved smaller managers—and now it has a
expertise, putting TIH in a position to grow in the evolving combined $150 billion in private infrastructure AUM markets
insurance brokerage market through investments in cutting- to go with the $10 trillion it has in primarily public-market
edge technology and the development of new products and and ETF AUM.
services, offering even greater value to clients.8

8: “CD&R and Stone Point Capital Acquire Truist Insurance Holdings,” Clayton, Dubilier & Rice, February 20, 2024.

22 Q1 2024 GLOBAL M&A REPORT FINANCIAL SERVICES

 Sponsored by

Healthcare
Healthcare M&A activity by quarter
$250 1,400

1,200
$200
1,000

$150
800

$100 600

400
$50
200

$0 0
Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1
2019 2020 2021 2022 2023 2024*
Deal value ($B) Deal count Estimated deal count
Source: PitchBook • Geography: Global • *As of March 31, 2024

Aaron DeGagne, CFA Healthcare M&A activity

Senior Analyst, Healthcare
4,634

Strong start for healthcare M&A: Over the TTM period, 2,961 4,019
3,363
healthcare deals were announced or closed for a combined 3,730
2,649 3,124
value of $391.2 million. Over the past three years, healthcare
3,199
deals accounted for, on average, 9.4% of global M&A deal 3,109 2,908 2,988
flow, and 13.5% of deal value. As such, healthcare tends
to have higher deal values compared with other sectors,
and Q1 was no exception, with large deals at the top of the
funnel led by Novo Nordisk’s headline-grabbing purchase of 913
CDMO Catalent and Gilead Sciences’ acquisition of CymaBay
Therapeutics. Looking ahead, continued growth in demand $80.4
for GLP-1 drugs could fuel further deals in the weight loss
$408.4

$444.5

$422.4

$438.7
$425.9

$447.2

$524.2

$437.2
$633.1
$510.1

space as newer startups seek to challenge Big Pharma. We

also see ophthalmic medical devices and pharmaceuticals
as another area to watch for M&A deal flow as incumbents 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024*
look to maintain advantages and pivot to capital deployment
Deal value ($B) Deal count Estimated deal count
following a period of margin growth focus.
Source: PitchBook • Geography: Global • *As of March 31, 2024

23 Q1 2024 GLOBAL M&A REPORT HEALTHCARE

 Sponsored by

Healthcare M&A EV/EBITDA multiples Healthcare M&A EV/revenue multiples

16x 14.8x 4x 3.7x
14.7x
13.7x 13.7x
14x 13.0x 13.1x 3.3x
12.1x 11.8x 3.0x
11.1x 2.9x
12x 10.6x 3x 2.7x
10.4x 2.6x 2.5x
2.4x
10x 2.1x

8x 2x

6x

4x 1x

2x

0x 0x
2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 TTM* 2014 2015 2016 2019 2020 2021 2022 2023 TTM*

Source: PitchBook • Geography: North America and Europe Source: PitchBook • Geography: North America and Europe
*As of March 31, 2024 *As of March 31, 2024

Big Pharma continues pivot to post-COVID-19 opportunities: Medtech navigates antitrust headwinds: Boston Scientific’s
In 2023, pharmaceuticals and biotech contributed an announced $3.7 billion acquisition of neuromodulation maker
outsized portion of total healthcare deal activity, and this Axonics was the standout deal in Q1, though otherwise
continued in Q1 with biopharma accounting for 14 of the top medtech M&A has been relatively muted in recent quarters.
20 healthcare sector deals in the quarter. Following Johnson This deal is set to be a benchmark test of medtech regulatory
& Johnson’s completion of the spin-off of its consumer health scrutiny as Boston Scientific has a competing product for
unit, Kenvue, we had anticipated the remaining company to urinary incontinence, and, on April 3, 2024, the Federal Trade
double down on acquisitions in biopharma as a key method Commission (FTC) asked the company for second-request
to leverage its strong balance sheet to maintain an innovation information. Over the past year, regulatory pushback has
edge. This has started to play out, and during the most recent scuttled deals including CooperCompanies’ purchase of
quarter, Johnson & Johnson acquired oncology biotech firm Cook Medical, and Illumina’s high-profile acquisition of liquid
Ambrx, and followed this up with a deal in early April for biopsy maker Grail. If the FTC ultimately grants approval for
cardiovascular device maker Shockwave Medical. Along with the Boston-Axonics deal, we anticipate this could be a green
most other Big Pharma firms, Johnson & Johnson built up a light for medtech acquirers to pursue other deals, though in
significant cash war chest during the COVID-19 pandemic, any case, large deals have a decently high chance of scrutiny
and capital is beginning to be spent as valuations become given the current presidential administration’s aggressive
more reasonable. approach to antitrust. Regulators have also recently been
scrutinizing PE roll-ups in healthcare services, and since 2024
is a presidential election year, acquirers may choose to wait
until 2025 to attempt to close major deals.

24 Q1 2024 GLOBAL M&A REPORT HEALTHCARE

 Sponsored by

IT
IT M&A activity by quarter
$350 3,000

$300 2,500

$250
2,000
$200
1,500
$150
1,000
$100

$50 500

$0 0
Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1
2019 2020 2021 2022 2023 2024*
Deal value ($B) Deal count Estimated deal count

Source: PitchBook • Geography: Global • *As of March 31, 2024

Garrett Hinds IT M&A activity

Senior Analyst, Private Equity
8,857

An IT deal value increase indicates improving trends: IT 7,856

deal value stepped up in Q1, with deal value totaling $165.0 5,987 6,879
billion, an increase of 57.9% QoQ and 42.8% YoY. Several
large megadeals involving stock consideration supported the 5,657 5,699
strength. On a volume basis, PitchBook estimates a total of 5,010 5,091 5,208
1,885 deals in the quarter, up 2.9% QoQ and 7.9% YoY. 4,466

1,885
Tech amasses a growing share of deal value: IT accounts for

$165.0
23.8% of global M&A deal value, solidly above the five-year
average of 19.2%. The IT sector’s deal momentum score has
significantly improved, now standing at 0.1, which places
$546.0
$648.5

$483.4
$426.0

$580.7

$783.8
$578.5

$972.6
$431.9

$613.5

it in the middle of the pack. This is a notable improvement

from Q4 2023 when it was in last place with a score of -0.8.
When we run an analysis of multiple expansion trends, 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024*
we find that the IT sector’s score has decreased to 0.1
Deal value ($B) Deal count Estimated deal count
from 0.5 in the previous quarter, indicating a reduction in
Source: PitchBook • Geography: Global • *As of March 31, 2024
valuation momentum.

25 Q1 2024 GLOBAL M&A REPORT IT

 Sponsored by

IT M&A EV/EBITDA multiples IT M&A EV/revenue multiples

16x 15.2x 4x
14.0x 3.5x
14x 13.2x 12.7x
12.5x 12.4x
11.9x 11.5x 2.8x
12x 11.1x 3x 2.8x 2.5x 2.8x
10.7x 10.5x
2.5x 2.5x
10x 2.3x 2.1x
2.0x
8x 2x

6x

4x 1x

2x

0x 0x
2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 TTM* 2014 2015 2016 2019 2020 2021 2022 2023 2024 TTM*
Source: PitchBook • Geography: North America and Europe Source: PitchBook • Geography: North America and Europe
*As of March 31, 2024 *As of March 31, 2024

Strategic buyers go big: The five largest IT sector will increase HPE’s sustainable growth trajectory and double
acquisitions in the quarter all involved strategic buyers. Still, its networking business to bolster its competitive positioning.
two PE buyers made it into the top 10. The largest deal was The combination is expected to deliver annual synergies of
in software, with Synopsys agreeing to acquire Ansys—a $450 million within three years, according to management.9
provider of engineering simulation software that streamlines Additionally, Renesas Electronics will acquire Altium—a
complex design programs—for a total of $35.0 billion paid in provider of printed-circuit-board design software—for an
cash and stock. The deal comes on the heels of a seven-year equity value of $5.9 billion in cash, drawing from cash on
product partnership and will align complementary product hand and new bank loans. Going forward, the combined
lines to expand Synopsys’ total addressable market by 1.5x, company will create an integrated electronics design and
according to management. Hewlett Packard Enterprise (HPE) lifecycle management platform to shorten development
agreed to acquire Juniper Networks—provider of high- cycles.10 Management expects the deal to be immediately
performance networking hardware, software, and services— accretive to earnings.
for equity value of approximately $14 billion. The transaction

9: “HPE to Acquire Juniper Networks to Accelerate AI-Driven Innovation,” Hewlett Packard Enterprise, January 9, 2024.
10: “Renesas to Acquire PCB Design Software Leader Altium to Make Electronics Design Accessible to Broader Market and Accelerate Innovation,” Renesas, February 15, 2024.

26 Q1 2024 GLOBAL M&A REPORT IT

 Sponsored by

Materials & resources

Materials & resources M&A activity by quarter
$90 600

$80
500
$70

$60 400

$50
300
$40

$30 200

$20
100
$10

$0 0
Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1
2019 2020 2021 2022 2023 2024*

Deal value ($B) Deal count Estimated deal count

Source: PitchBook • Geography: Global • *As of March 31, 2024

Kyle Walters Materials & resources M&A activity

Associate Analyst, Private Equity
1,775 1,802
1,633 1,639 1,676 1,615
Materials & resources starts the year at a slower pace: The 1,528 1,498
materials & resources sector continues to show its cyclicality 1,286
with an estimated 443 deals for an aggregate deal value of 1,333

$26.1 billion—a deal value figure that comes in below totals

from each of the previous four quarters, as the sector remains
out of favor with investors. Given its cyclical nature, investors
often shift their focus away from materials & resources,
opting instead for more defensive sectors in times of market
uncertainty. Despite the slow start, there are bright spots in 443
the sector. $26.1
$240.7
$232.4
$168.0

$184.8
$242.2
$190.3

$170.5

$133.9
$190.1
$176.1

2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024*
Deal value ($B) Deal count Estimated deal count
Source: PitchBook • Geography: Global • *As of March 31, 2024

27 Q1 2024 GLOBAL M&A REPORT MATERIALS & RESOURCES

 Sponsored by

Materials & resources M&A EV/EBITDA multiples Materials & resources M&A EV/revenue multiples
12x 2.0x
1.8x
1.8x
9.8x
9.8x 1.6x
10x 9.1x 1.5x
8.9x 8.8x 8.9x 1.6x
8.6x 1.4x 1.3x 1.4x
1.4x
8x 6.6x 6.9x 7.1x 1.3x 1.2x
7.1x
1.2x 1.0x

6x 1.0x

0.8x
4x
0.6x

0.4x
2x
0.2x

0x 0.0x
2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 TTM* 2014 2015 2016 2019 2020 2021 2022 2023 TTM*
Source: PitchBook • Geography: North America and Europe Source: PitchBook • Geography: North America and Europe
*As of March 31, 2024 *As of March 31, 2024

Metals, minerals, and mining continue to support materials The construction industry boosted deal activity with
& resources M&A activity: In February, precious metals multiple multibillion-dollar deals: In February, France’s Saint-
producer and the second largest gold producer in Kazakhstan, Gobain agreed to acquire Australian building-materials maker
Polymetal International, agreed to sell its Russian assets CSR for $2.8 billion. The deal will help Saint-Gobain establish
to Siberian gold miner Mangazeya Mining for $3.7 billion. a presence in the high-growth Australian construction market
Polymetal’s Russian assets were placed under US sanctions in and strengthen its position in the fast-growing markets of
2023 in response to Russia’s invasion of Ukraine in February the Asia-Pacific. In the US, Martin Marietta Materials agreed
2022. The completion of the divestment will allow the group to acquire 20 active aggregate operations in Alabama, South
to de-risk the company’s business, deliver stable cash flows, Carolina, South Florida, Tennessee, and Virginia from Blue
and pursue new investment opportunities. In other metals, 11
Water Industries for $2.1 billion. The transactions not only
Alcoa cemented its position as one of the world’s largest improve the company’s product mix, margin profile, and
producers of bauxite and alumina (a semiprocessed form of durability through cycles but also provide balance sheet
aluminum) by acquiring Australia’s Alumina, its joint venture flexibility for future acquisitive and organic growth. The
partner in a global mining operation, for $2.2 billion. The acquisition will also complement Martin Marietta’s existing
acquisition allows Alcoa to bet on the importance of metals geographic footprint in the southeast region of the US and
that will play a key role in the energy transition, such as allow it to expand into new growth platforms in target
aluminum, which is used in large quantities to manufacture markets, including Miami and Nashville, Tennessee.12
electric vehicles and renewable-power infrastructure.

11: “Polymetal International to Sell Russian Business for $3.69 Bln,” The Wall Street Journal, Elena Vardon, February 19, 2024.
12: “Martin Marietta Announces Acquisition of Aggregates Operations From Affiliates of Blue Water Industries LLC; Company Also Completes South Texas Cement and Concrete Divestiture,” Martin Marietta, February 12, 2024.

28 Q1 2024 GLOBAL M&A REPORT MATERIALS & RESOURCES

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