Design-Build Retail Stores M&A Transactions and Valuations

Between Q1 2020 and Q2 2024, acquirers deployed $3 billion in design-build retail store companies across 215 transactions. Design-build retail stores are a subsector that involves the modeling and creation of innovative retail spaces to enhance customer experience. The industry is increasing in importance as brick-and-mortar stores strive to improve interactions with customers in an increasingly consumer-oriented online economy. 

The sector’s median deal size of $8 million indicates an abundance of transactions in the lower market, creating unique exit opportunities for smaller companies in the design-build retail stores sector. 

Acquirers from the US have dominated capital deployment and deal count in the sector. Additionally, strategic acquirers conduct over 60% of M&A transactions. Design-build retail store shareholders should be aware of the exit opportunities that are available.

• The valuation multiples are based on a sample set of publicly listed design-build retail store companies, as well as M&A transactions in the sector. The data was collected on October 8, 2024.
• The sample set trades at an enterprise value to EBITDA multiple range of between 5x and 10x, with an increase in average multiples as the enterprise value increases.
• Average enterprise value to revenue multiples ranged from 0.5x to 3x.

• The median transaction size has ranged significantly with a peak in Q2 2021 of over $215 million. This was driven by large transactions conducted by strategic US-based acquirers. 
• Q1 2020 to Q2 2022 saw a significant median transaction size that ranges between $16 million and $60 million. 
• Since Q3 2022, the median transaction size has remained under $25 million, indicating the abundance of smaller transactions. Many smaller transactions are not announced, which may skew the data.

• Between Q1 2020 and Q3 2024, $3 billion was deployed across 215 design-build retail store acquisitions. The average transaction value was $8 million, highlighting the volume of transactions in lower and lower-middle markets.  
• The most significant deployment of capital, $1.9 billion, occurred in Q1 of 2021 with the largest deal count of 26 transactions in Q4 of 2021. 
• While the deal count shows variability, it remains above 10 per quarter, except for the drop in Q1 and Q2 of 2020. This consistency indicates a stable interest in deal-making, even as the investment amounts fluctuate.
• Birnam Wood Capital’s acquisition of Interior Logic Group for $1.64 billion, completed in March 2021, was the largest transaction in the sector.

• Transactions by strategic acquirers were dominated by deal count in the sector. They contributed 60% of all capital in the sectors while conducting 46% of all capital invested. The mean transaction size of $10 million highlights the appetite for smaller acquisitions. 
• Private equity firms and other financial acquirers conducted 40% of M&A transactions and contributed 54% of capital deployed in the sector. The mean transaction size of $18 million indicates demand for larger acquisitions.

• US-based acquirers dominated the capital invested in design-build retail stores, with over $2 billion across 52% of the deals in the category. This could be due to a variety of factors, including the popularity of sports podcasts, the abundance of established podcasts, and the demand by media companies and advertisers to reach new audiences and select demographics.  
• European acquirers contributed 40% of all M&A transactions. Western Europe, particularly the United Kingdom, Ireland, and Germany contributed significantly to the sector’s deal count. The relatively low capital deployment shows an appetite for smaller transactions in design-build retail store transactions as the sector develops in Europe. 
• Middle Eastern-based acquirers conducted 6 M&A transactions in the sector with a median deal size of $10 million.
• The rest of the world exhibits a noticeable spike in the capital invested but a small share of the deal count. This implies a small number of larger transactions across countries that are not individually listed.

Deal Spotlight:

JSI Store Fixtures

JSI Store Fixtures are a manufacturer and retailer of produce displays, refrigeration fixtures, bakery cases, wine fixtures, floral displays, and specialty millwork based in Utah, in the US. JSI customers are large and regional grocery and retail stores.

The acquisition was valued at $94 million transactions with 100% of the deal paid for with cash on close. For more information on how transaction structures impact seller liquidity, see Jahani and Associates’ article here.

The design-build retail store industry is increasingly important,  as brick-and-mortar retail outlets look to compete with online competitors. Since 2020, significant M&A activity has occurred without a large amount of capital deployed. This shows the occurrence of smaller transactions within the sector. 

Founders and shareholders of design-build retail store companies should be mindful of exit opportunities. The median transaction size is low and the EBITDA multiple ranges between 5x and 10x. The most active acquirers in the sector are strategic acquirers who contribute the majority of capital and deal flow and are mostly based in the US.

Source: Pitchbook Data, Jahani & Associates (1), (2), McKinsey, Nasdaq.

Medical Equipment for Respiratory Care Capital Markets Activity

Between Q1 2020 and Q2 2024, over $91 billion was deployed across 3,147 capital market transactions in the medical equipment for respiratory care sector globally. The average deal size of $29 million indicates an appetite for transactions in the lower and middle markets.

The respiratory care devices industry focuses on medical equipment used to diagnose, treat, and manage respiratory conditions such as asthma, COPD, and acute respiratory distress. Key products include ventilators, oxygen concentrators, nebulizers, CPAP or BiPAP machines, patient mobility machines, and diagnostic tools. These devices are essential in hospitals, clinics, and home care settings.

The respiratory care devices industry is growing due to several factors. Increasing prevalence of respiratory diseases like COPD, asthma, and sleep apnea, combined with the rising geriatric population, is driving demand for advanced treatment options. Additionally, technological innovations and the shift towards home healthcare solutions further fuel growth. Increased awareness of respiratory health, particularly post-pandemic, and investments in research and development also contribute to the industry’s expansion.

• Between Q1 2020 and Q2 2024, over $91 billion was deployed across 3,147 capital market transactions in the medical equipment for respiratory care sector by global firms with an average deal size of $29 million.
• Q3 2021 reflects the period with the most significant deployment of capital, $36 billion, while Q1 2021 experienced the highest deal count, 226.
• There is consistent global demand for transactions in the medical equipment for respiratory care sector, with an average deal count per quarter of 175 deals.
• The largest completed transaction was the 80% acquisition of Medline Industries led by Abu Dhabi Investment Authority for $34 billion on June 5, 2021. This transaction resulted in a valuation to revenue multiple of 2.1x.  

• The United States represents the largest share of capital invested, contributing 50% of the total ($63 billion). It also leads in deal count, representing 32% of the total deals (1,100 deals). This resulted in an average deal size of around $58 million.
• China accounts for 10% of the total capital invested, amounting to $12.6 billion. Regarding deal count, it ranks second with 22% (730 deals), resulting in an average deal size of around $17 million.
• Despite its smaller deal count (147 deals, 4% of total deals), the UAE attracted 25% of the total capital ($32 billion), indicating that it is involved in more significant deals. The average deal size of over $200 million indicates an appetite for larger transactions, suggesting a high-value market presence with an average deal size of around $217 million.
• The “other” category contributes only 9% of total capital invested but makes up a significant 38% of deal count, highlighting a global interest in capital market transactions in this space.

• California accounts for 19% of the total deal count in the medical equipment for respiratory care sector from Q1 2020 to Q2 2024, with 612 deals. This makes it the state with the highest number of deals, with an average deal size of around $10 million.
• Illinois contributed the most capital invested, representing 42% of the total capital invested across the states, amounting to $51 billion. Illinois plays a crucial role in terms of capital, with an average deal size of $325 million across 157 transactions.
• Although Minnesota accounts for only 4% of the deal count, it contributed to 11% of the total capital invested ($13.9 billion). Florida also plays an important role, contributing 8% ($10 billion) of capital investment while only representing 5% (167) of the deal count.

• Buyout/LBO transactions dominated the market in terms of total capital invested, with $44 billion spread across 377 deals. The average deal size for these transactions is also substantial at $117 million.
• Mergers and acquisitions are the most common type of transaction in this market, with 455 deals contributing $33.5 billion in capital, although the average deal size is lower at around $73 million compared to buyout/LBOs.
• While there were only 6 public to private deals, they contributed $5 billion in capital, with an average deal size of $909 million, indicating that these deals involve significant investments per transaction. This is understandable with public companies typically being larger and more mature compared to private companies.
• Early-stage deals, including seed, early-stage VC, and accelerator/incubator investments, focus on high deal volumes but lower capital commitments. With average deal sizes of around $1 million, $4 million, and $0.1 million, respectively, these transactions reflect the higher risk and potential for growth in early-phase companies.

Deal Spotlight:

GREAT ELM HEALTHCARE

Great Elm Healthcare is a supplier of durable medical equipment based in Mesa, Arizona. The company specializes in respiratory products including home respiratory equipment, early intervention, and other testing and mobility products. They were fully acquired by Quipt Home Medical for $80 million on January 3, 2023.

This transaction resulted in a enterprise value to revenue multiple of 1.3x and an enterprise value to EBITDA multiple of 6.2x.

 

Between Q1 2020 and Q2 2024, the medical equipment for respiratory care sector attracted over $91 billion in capital across 3,147 transactions. Growth was driven by the increasing prevalence of respiratory diseases, aging populations, and heightened healthcare awareness post-pandemic. The US dominated both capital investment and deal volume, with buyouts and M&A leading transaction types in terms of deal size, and early-stage investments leading the deal count.

Sources: Mordor Intelligence, Fortune Business Insights, Expert Market Research, Data Bridge Market Research, Grand View Research, Research and Markets, Marketsandmarkets.

Mechanical Fasteners Transactions and Valuations

Between Q1 2020 and Q3 2024, approximately $50 billion was invested into the mechanical fasteners sector through M&A transactions globally.

The mechanical fasteners sector plays a critical role in various industries, supporting the structural integrity and functionality of numerous industrial applications. This sector includes essential components such as bolts, nuts, and screws, along with washers, bushings, and seals, all of which are engineered to exacting standards to ensure durability and reliability, particularly in demanding environments. These components are fundamental in industries like automotive, aerospace, and construction, where precision and strength are paramount.

As global supply chains continue to evolve, especially with trends toward reshoring and regionalization, opportunities are expanding for companies specializing in precision engineering and high-performance mechanical solutions. The growing focus on automation, stricter safety regulations, and the need for energy-efficient designs is driving demand for high-quality mechanical fasteners. Emerging markets are increasingly placing emphasis on components that meet these evolving standards, ensuring that products like bolts, nuts, screws, and advanced mechanical systems play an ever-more critical role in achieving higher levels of durability, precision, and efficiency.

• The valuation multiples are based on a sample set of mechanical fasteners companies, with data collected between Q1 2020 and Q3 2024. This analysis reflects a broad range of company sizes and financial performances in the sector.
• The sample set typically trades at an enterprise value to revenue (EV/Revenue) multiple ranging from 1x to 20x, with an average of 3.7x and a median of 2.0x. These multiples suggest that many companies in the sector are valued at around two times their revenue, with larger firms commanding significantly higher multiples.
• Enterprise value to EBITDA (EV/EBITDA) multiples varied greatly, typically ranging from 4.5x to 60x, with an average of 17.9x and a median of 11.0x. Higher multiples were generally observed for companies with strong market positions or greater profitability, especially those valued above $100 million in enterprise value.

• Between Q1 2020 and Q3 2024, a total of over $50 billion was deployed across 1,386 M&A transactions in the mechanical fasteners sector. The average deal size of approximately $36 million indicates an appetite for transactions in the lower and middle market.
• Q1 2022 stands out as the period with the highest capital deployment, with $7.32 billion invested, despite having a relatively lower deal count than the peak in deal volume. On the other hand, Q4 2021 recorded the highest deal count, with 96 transactions, showcasing a heightened interest in acquisitions during that time frame.
• The average deal count fluctuated throughout the period, but it consistently remained above 40 deals per quarter, with certain quarters experiencing sharp drops, such as Q2 2020, which had only 28 deals. This could be attributed to macroeconomic factors affecting global markets, including the onset of the pandemic.
• Despite some quarterly variability, the data demonstrates that investor interest in mechanical fasteners M&A transactions has remained steady. Q2 2023, for example, saw a resurgence in both capital invested ($3.81 billion) and deal count (74), reflecting ongoing confidence in the sector’s growth potential.

• Between Q1 2020 and Q3 2024, M&A transactions in the mechanical fasteners sector were heavily concentrated in the United States, accounting for 74% of the total capital invested, which equated to approximately $37.06 billion. This strong dominance reflects the significant role the US plays in the global mechanical fasteners market, driven by both the size of its industrial sector and a high level of consolidation.
• Switzerland followed at a distant second, attracting $2.16 billion in capital, or 4% of the total. South Korea and Canada each accounted for around 3% of capital invested, investing $1.56 billion and $1.24 billion, respectively. Other European countries, such as the United Kingdom, France, and Italy, captured smaller portions of the capital, each investing between 2% and 3% of the total.
• In terms of deal count, the US again led, representing 46% of all transactions. The United Kingdom was the second-most active country by deal count, contributing 8%. Germany and France followed closely, with 7% and 6% of the deal count, respectively. Italy and Canada made up 5% and 4% of the deal count, while Sweden accounted for 3%.
• The remaining 21% of transactions were scattered across various other countries, reflecting a diverse but less concentrated global interest in in mechanical fasteners M&A deals.
• This data highlights that while the mechanical fasteners market sees global activity, the majority of capital and deals are concentrated in a few key regions, particularly in North America and Europe.

• Buyout and leveraged buyout (LBO) deals were prominent, with 557 transactions totaling $23 billion in capital invested. This illustrates strong private equity interest in acquiring and restructuring companies in this sector.
• Mergers and acquisition deals accounted for the highest deal count, with 805 transactions and $24 billion in capital. The average deal size was $30 million, reflecting consolidation trends in the industry.
• Public to private transactions, though fewer in number (9 deals), saw the largest average deal size of $1 billion, indicating the high value of acquisitions involving publicly listed companies.

Deal Spotlight:

GROUPE ETANCO

Groupe Etanco, based in France, is a leading manufacturer of fastening solutions and technical products for the construction sector. The company provides a wide range of fasteners, sealants, and safety equipment, servicing industries involved in building envelope and façade systems. Known for its engineering expertise and innovative solutions, Groupe Etanco is critical in enhancing construction efficiency and safety, serving a large network of clients across Europe.

On April 1, 2022, Groupe Etanco was acquired by Simpson Manufacturing for $803.10 million. At the time of the acquisition, Groupe Etanco had revenue of $308.30 million and EBITDA of $96.3 million. The deal was executed at a valuation/ revenue multiple of 2.60x and a valuation/ EBITDA multiple of 8.34x.

The acquisition strengthened Simpson Manufacturing’s position in Europe, providing greater access to the construction fasteners market and expanding its portfolio of high-performance fastening systems.

Automotive Sales, Leasing, and Rental Transactions and Valuations

Between Q1 2020 and Q2 2024, over $44 billion was deployed across 1,206 M&A transactions in the automotive sales, leasing, and rental industry by global firms, with an average deal size of around $36 million.

Automotive sales, leasing, and rental companies are businesses that provide access to vehicles through various models: direct sales, long-term leases, or short-term rentals. Sales companies sell new or used vehicles to individuals and businesses, often including after-sales services. Leasing companies offer vehicles for long-term use without ownership, providing maintenance and fleet management. Rental companies provide short-term vehicle access, catering to temporary needs for travel, business, or personal use, often with additional services.

The automotive sales, leasing, and rental industry is on a robust growth trajectory, driven by urbanization, rising electric vehicle (EV) adoption, and technological advancements such as digital booking and telematics. The shift towards flexible mobility solutions, expanding rental locations, and increased tourism and business travel are further boosting demand. Strategic investments, including mergers and partnerships with automakers, are enhancing fleet diversification and service innovation, positioning the industry for continued expansion in the coming years.

• The valuation multiples are based on a sample set of private M&A transactions and publicly listed automotive sales, rental, and leasing companies in the sector. The data was collected on September 26, 2024.
• The sample set typically trades at an enterprise value to revenue multiple range between 1x and 3x, increasing as the enterprise value of the business increases.
• Enterprise value to EBITDA multiples varied significantly, ranging between 4x to 8x. This valuation typically increases as the enterprise value of the asset increases.

• Between Q1 2020 and Q2 2024, over $44 billion was deployed across 1,206 M&A transactions in the automotive sales, leasing, and rental industry by global firms, with an average deal size of around $36 million.
• Q1 2021 reflects the period with the most significant capital deployment ($10.8 billion) and Q4 2021 experienced the highest deal count (93 deals).
• There is a consistent demand for M&A transactions in the automotive sales, leasing, and rentals sector highlighted by an average capital investment per quarter of around $2 billion and an average deal count of 67 deals per quarter.
• The largest transaction was the 92% public-to-private leveraged buyout of Car (Beijing) for $6.2 billion by MBK Partners in March 2021, valuing the asset at around $6.7 billion. This transaction resulted in an enterprise value to revenue multiple of 7.2x for Car (Beijing).

• The United States leads in both capital invested and deal count, with 42% of the capital invested ($18.7 billion) and 44% of the deal count (561 deals), indicating a strong presence and interest in the automotive sales, leasing, and rental M&A sector.
• China ranks second in terms of capital invested, contributing 15% of the total ($6.9 billion), highlighting its significant financial involvement in the automotive industry, despite having a lower deal count (9 transactions), resulting in an average deal size of around $760 million. This figure would have been exacerbated by the Car (Beijing) transaction.
• There is a strong interest for M&A transactions in the industry stemming from the European region by the significant involvement of France, the UK, Germany, and the Netherlands, collectively contributing at least 13% of the capital invested ($5.6 billion), and 18% of the deal count (221 transactions). 
• The United Arab Emirates is significant in deal count (51 deals) and capital contribution ($2.6 billion) as well, highlighting the diverse global interest in M&A transactions in the automotive sales, leasing, and rentals industry.

• Mergers and acquisitions are the most prevalent deal type, with 1,114 transactions totaling approximately $28.7 billion in capital invested, making it the dominant form of transaction in the automotive sales, rental, and leasing sector.
• Leveraged buyouts (LBOs) rank second in terms of capital invested, with $14.6 billion spread over 142 deals. This highlights their importance as a significant financing mechanism within the sector.
• Corporate divestitures have the secondhighest deal count at 306 transactions but rank third in terms of capital invested at $9.9 billion, indicating that these deals may typically involve smaller transaction sizes compared to M&A and buyouts.

Deal Spotlight:

JARDINE MOTORS GROUP

Jardine Motors Group is a prominent
operator of franchised motorcar dealerships.
The company primarily focuses on the sale
and leasing of new and used cars, vehicle
maintenance, vehicle parts, accident aftercare,
and electric vehicle services. Based in Essex,
United Kingdom, Jardine Motors Group
represents numerous prestigious automotive
brands, including Aston Martin, Audi, BMW,
Ferrari, Jaguar, Land Rover, Maserati, McLaren,
Mercedes-Benz, MINI, Porsche, and others
across its 70 sales and service locations in the
UK.

Jardine Motors Group was fully acquired
by Lithia Motors for $360 million on March
16, 2023. This acquisition was made with
the intention of expanding Lithia Motors’
operations within Europe. The acquisition was
made at an enterprise value of $360 million,
reflecting a 0.18x EV/revenue multiple and a
6.1x EV/EBITDA multiple.

The automotive sales, leasing, and rental industry has seen significant growth from Q1 2020 to Q2 2024, driven by urbanization, rising electric vehicle adoption, and technological advancements. Over $44 billion was invested in 1,206 M&A transactions, with an average deal size of $36 million. The sector is characterized by diverse business models, including vehicle sales, long-term leasing, and short-term rentals. Strategic investments, including mergers and partnerships, are enhancing service innovation and fleet diversification. With strong M&A activity led by the United States and China, the industry is well-positioned for continued expansion, fueled by increasing demand for flexible mobility solutions.

Costume Manufacturing for Film and Theater M&A Transactions and Valuations

Between Q1 2020 and Q2 2024, $800 million was deployed by acquirers in the costume manufacturing for film and theater industry. The sector includes all aspects of wardrobe design and creation for film productions, which could include animation as well as theater.

The costume manufacturing for film and theater sectors have experienced turbulent macroeconomic conditions caused by the global pandemic, widespread industry strikes, and lockdowns. Despite this, significant M&A activity has occurred. EBITDA multiple in the sector ranged between 5x and 8x in the period, with technology and intellectual property contributing significant increases in multiples.

Most transactions conducted and capital invested in the costume manufacturing for film and theater sectors were by US-based acquirers. Additionally, strategic acquirers deployed over 56% of the transactions conducted.

Founders and shareholders of firms that manufacture costumes for film and theater should be aware of exit opportunities presented by strategic acquirers from the US.

• The valuation multiples are based on a sample set of M&A transactions in the costume manufacturing for film and theater sector. The data was collected on September 26, 2024.
• The sample set trades at an enterprise value to EBITDA multiple range of between 5x and 8x with an increase in average multiples as the enterprise value increases.
• Average enterprise value to revenue multiples ranged from 0.5x to 3x.   

• The median transaction size has ranged significantly with a peak of over $100 million seen in Q2 2024. This was driven by large transactions conducted by private equity firms. 
• Q3 2020, Q4 2020, Q2 2022, and Q1 2024 saw the lowest median deal size, as none of the transactions competed disclosed the deal value. 
• The largest median deal size occurred since the start of 2023, indicating a potential uptick in M&A activity. 

• Between Q1 2020 and Q2 2024, $809 million was deployed across 46 costume manufacturing for film and theater acquisitions. The average transaction value was $18 million, highlighting the volume of transactions in lower and lower-middle markets.  
• The most significant deployment of capital, $186 million, occurred in Q2 of 2021. Many of the transactions in the sector did not disclose the acquisition size, so the data may be under reported.  
• The capital deployment and deal count was low in 2020, which corresponds to the initial impact of the pandemic and the shutdowns of movie productions and theaters globally.
• The Writers Guild of America (WGA) strike, which occurred between May 2023 and September 2023, similarly correlated with a lower period of capital market activity in the costume manufacturing for film and theater sector.
• Deal count peaked in Q4 2021 and has steadily increased since the start of 2023. The Fed’s reduction of interest rates in September 2024 may lead to an increase in capital market activity in the sector.

• Transactions by strategic acquirers in M&A transactions were dominated by capital deployed in the sector. They contributed 56% of all capital in the sectors while conducting 20 transactions. The average transaction size of $22 million highlights the appetite for larger acquisitions.
• Buyouts and leveraged buyouts accounted for $358 million of capital invested across 26 M&A transactions in the costume manufacturing for film and theater industry. The average transaction size of 13 million indicates the appetite for private equity acquisitions in the lower middle market.

• US-based acquirers dominated the capital invested in the costume manufacturing for film and theater sectors, with over $350 million across 17 transactions in the category. This could be due to a variety of factors, including the historical dominance of the Hollywood film industry and the abundance of larger companies in the sector.  
• European acquirers conducted a significant number of transactions in the sector, 15, but a small fraction of the capital deployed in the sector, $11 million. The significant deal count indicates an appetite for smaller costume manufacturing for film and theater acquisitions and the abundance of smaller and independent companies in the industry.
• Acquirers from Canada and East Asia contributed significantly to deal count and capital invested in the sector. No announced transactions were conducted by acquirers in other geographic regions.

Deal Spotlight:

PROVIDENCE EQUITY

Providence Equity Partners is a private equity investment firm based in Providence, Rhode Island. The firm seeks to invest in companies operating in the media, finance, telecommunication, education, and technology sectors based in Europe and North America.

Providence has 23 active media portfolio companies and has conducted several add-ons and leveraged buyouts in the sector. For more information on how transaction
structures impact seller liquidity, see Jahani
and Associates’ article here.

 

Costume manufacturing for film and theater companies have endured challenging macroeconomic conditions. Acquisitions within the sector have been effected by shutdowns to the film and theater industries caused by the WGA strike and the global pandemic. Transactions and capital invested increased sharply in Q2 2024, and this trend could continue given the lowering of interest rates. 

Companies that manufacture costumes for film and theater should be mindful of exit opportunities. EBITDA multiple in the sector ranged between 5x and 8x in the period with technology and intellectual property contributing significant increases in multiples. 

Sources: Pitchbook Data, Jahani and Associates (1), (2).

B2B Sales Solutions Transactions and Valuations

Between Q1 2020 and Q2 2024, over $40 billion was deployed across 872 M&A transactions in the B2B sales solutions sector, with an average deal size of $50 million.

B2B sales solutions are strategic tools and methodologies aimed at optimizing the business-to-business sales process. These solutions typically involve software platforms that help sales teams create compelling business cases, quantify the financial impact of their offerings, and effectively communicate value propositions to potential clients. By leveraging data-driven insights, these solutions enable businesses to improve customer engagement, streamline decision-making, and close deals more efficiently, ultimately driving better sales outcomes.

The B2B sales solutions industry has experienced substantial growth, fueled by advancements in AI and machine learning that enhance sales processes through predictive analytics and automation. The shift towards hybrid and remote selling has further improved efficiency, enabling companies to utilize diverse talent and adaptable strategies. From Q1 2020 to Q2 2024 the sector maintained strong investment activity, particularly in the US and Europe, which dominated transactions and capital allocation. Consistent deal activity, despite market fluctuations, highlights the sector’s resilience and strategic importance. The industry is set to continue evolving, driven by ongoing technological innovation and strategic mergers and acquisitions.

• The valuation multiples are based on a sample set of private M&A transactions and publicly listed healthcare therapy companies in the sector. The data was collected on September 4, 2024.
• The sample set typically trades at an enterprise value to revenue multiple range between 2x and 5x, increasing as the enterprise value of the business increases.
• Enterprise value to EBITDA multiples varied significantly, typically ranging between 6x and 11x. This valuation stays consistent as the enterprise value of the business increases.     

• Between Q1 2020 and Q2 2024, over $40 billion was deployed across 872 M&A transactions in the B2B sales solutions sector by global firms, with an average deal size of $50 million. 
• Q3 2021 reflects the period with the most significant capital deployment ($19.6 billion) and the highest deal count (68 deals).  
• The capital invested fluctuates significantly throughout the period while the deal count remains stable around the mean of 48 deals per quarter. This indicates a consistent demand for M&A transactions in B2B sales solutions even through market conditions, which may suppress valuations. 
• The largest completed transaction was the full acquisition of Personify Health through a leveraged buyout by HealthComp, via its financial sponsors Blackstone, Eir Partners, and New Mountain Capital. Personify Health was acquired for $3 billion in November 2023.

• The United States accounts for the majority of the deal count and the capital invested, with 450 transactions representing 51% of the total deal count and $37 billion capital invested representing 83% of the total. This indicates a significant focus on the US market in B2B sales solutions M&A activity during this period. 
• The United Kingdom is the second-largest region by deal count, with 80 transactions, accounting for 9% of the total. This suggests a strong presence in the B2B sales solutions market. 
• The capital invested is highly concentrated in a few countries, with the US (83%), the Netherlands (5%), the UK (4%), and Israel (4%) together representing the majority of the capital invested. These countries collectively account for significant global investments in the B2B sales solutions sector.

• Mergers and acquisitions (M&A) were the most prevalent deal type, with 573 deals and a significant $35 million in capital invested. This highlights the strong preference for M&A as a strategy in the B2B sales solutions sector, accounting for the largest deal count and capital share.  
• Corporate divestitures, accounting for only 73 deals, have the second-highest capital investment of $13 million. This suggests that these deals, although fewer, involve substantial asset transfers or corporate restructuring, resulting in high capital requirements.   
• Buyouts/leveraged buyouts (LBOs) were also a significant deal type, with 296 deals totaling $8 million in capital invested. This indicates that private equity and other investors actively pursue LBOs in this sector, often restructuring or refinancing businesses.

Deal Spotlight:

ANALYTIC EDGE

Singapore-based Analytic Edge offers a sales and marketing analytics platform that enhances budget optimization and measures the effectiveness of digital sales and marketing efforts. The platform captures both direct and indirect contributions, provides insights into pricing strategy, sales forecasting, determining ROI on marketing strategies, and assortment optimization, while identifying key customer segments. It helps businesses streamline their sales process, drive consumer demand, acquire new customers, and protect revenues while improving workforce management and overall operational efficiency. 

Course5 Intelligence acquired 100% of Analytic Edge for $35 million to enhance its AI-powered sales and marketing analytics solutions. This strategic integration strengthens Course5’s value proposition. 

 

The acquisition was made at an enterprise value of $35 million, reflecting a 3.5x enterprise value to revenue multiple, based on Analytic Edge’s $10 million in revenue.

The B2B sales solutions sector has experienced substantial growth from Q1 2020 to Q2 2024, with over $40 billion deployed across 872 transactions, resulting in an average deal size of $50 million. Valuation multiples remained competitive, with enterprise value to revenue multiples ranging from 2x to 5x, and enterprise value to EBITDA multiples ranging from 6x to 11x. The US dominated the market, accounting for 51% of the deals and 83% of total capital invested. The sector’s resilience is highlighted by the consistency in deal count, even amid fluctuating capital investments. 

The industry’s growth is propelled by technological advancements, such as AI and machine learning, which enhance sales processes and drive efficiency. The focus on M&A as the dominant strategy underscores the sector’s dynamic nature, with significant activity concentrated in the US and supported by strategic divestitures and buyouts.

Sources: Uplead, Draup, Mc Kinsey & Company (1), (2), Simon-Kucher, Vainu, The Future of Commerce, Pitchbook M&A Research.

Out-of-Home Tech- Enabled Advertising and Experiential Media Capital Market Transactions

Between Q1 2020 and Q2 2024, $6 billion was deployed in the out-of-home tech-enabled advertising and experiential media industry. The sector includes all forms of digital out-of-home media and experience-driven technology advertising. Geotargeted programmatic screens on taxi tops, interactive displays with entertainment and advertising in shopping centers, and digital screens in elevators that share essential information, as well as advertisements, are all examples of out-of-home tech-enabled advertising and experiential media.

Most transactions conducted and capital invested were by US-based investors, with over 80% of all capital invested. Debt lenders have invested significant capital due to the CapEx-heavy nature of the industry. The forecasted decrease in interest rates will increase opportunities to secure debt funding in the sector with lower costs of capital.

Out-of-home tech-enabled advertising and experiential media technology founders and shareholders should be aware of fundraising opportunities presented by US-based investors, particularly among debt lenders.

• Between Q1 2020 and Q2 2024, $6 billion was deployed across 210 transactions in the out-of-home tech-enabled advertising and experiential media technology sector. The average transaction value was $28 million, highlighting the volume of transactions in middle and lower-middle markets. 
• The most significant deployment of capital, $1.3 billion, occurred in Q4 of 2023 across 12 transactions, with acquisitions driving investments. Capital invested in the sector has increased significantly since Q2 2023. The positive trend indicates an appetite for transactions in the sector and the demand for innovation in out-of-home tech-enabled advertising and experiential media technology.
• The largest deal count occurred in Q1 and Q2 of 2020 with 20 and 24 transactions, respectively. The deal count slowed throughout the period despite the upturn in capital deployed, indicating an abundance of larger transactions.
• Clear Channel Outdoor conducted the largest transaction in the sector. The company raised $1.05 billion in debt funding in May 2021 through undisclosed investors.   

• Debt financing transactions dominated capital deployed in the sector, as $3.8 billion was deployed across 17 transactions. The asset-heavy nature of digital out-of-home advertising led to opportunities for debt lenders to finance asset purchases. The forecasted decrease in interest rates will increase opportunities to secure debt funding in the sector with lower costs of capital.  
• Over $250 billion was deployed across 59 venture capital transactions in the out-of-home tech-enabled advertising and experiential media technology sector. The average transaction size of $4 million indicates an appetite for deals in the middle and lower-middle markets.
• Mergers and acquisitions accounted for over $850 billion of capital deployed in the sector across 65 transactions. The average transaction size of under $13 million demonstrates the demand for smaller strategic acquisitions and the abundance of early stage M&A deals. 
• IPOs (initial public offerings) were rare, with only 4 transactions occurring between Q1 2020 and Q2 2024.

• US-based investors dominated the capital invested in the out-of-home tech-enabled advertising and experiential media sector, with 83% of capital deployed ($5 billion). US-based investors conducted a significant portion of transactions (43%), with 91 complete and announced deals. This could be due to a variety of factors, including the changing online advertising regulations in the US, the abundance of smaller companies, and increased willingness for US-based debt lenders to deploy significant capital into US-based companies in the sector. 
• Middle Eastern investors contributed over $250 million across 7 transactions with an average deal size of under $36 million. This implies an appetite for large transactions in the region. 
• Investors in developed nations such as Canada and Europe contributed significantly to the deal count in the out-of-home tech-enabled advertising and experiential media technology technology sector. The relatively small capital deployment in the sector indicates that a large number of smaller transactions occurred in these regions.
• The rest of the world exhibited a noticeable spike in deal count, but an exceedingly small share of capital invested. This implies a wide distribution of smaller deals not individually listed across various countries. These smaller markets collectively engaged in many out-of-home tech-enabled advertising and experiential media technology transactions. Still, each deal tended to be small, reflecting diverse capital market activities.

Deal Spotlight:

SHOPPER

Shopper is an Australian retail out-of-home media technology company designed for grocery stores and shopping centers. The company offers digital advertising screens for advertising campaigns created to increase direct engagement with customers in order to provide information and entertainment while generating advertising revenue. 

The company was acquired by the Woolworths Group for $102 million on July 18, 2022. The Woolworths Group is a $39 billion enterprise value publicly listed grocery and retail outlet with operations across Australia and New Zealand.

 

Capital invested in the out-of-home tech-enabled advertising and experiential media technology sector is dominated by US-based investors. Developed markets have similarly invested in the sector. The demand for innovative advertising solutions in a climate of increased online regulations is likely driving investment. 

Debt lenders contributed more than half of the capital invested in the sector. The CapEx and asset-heavy nature of out-of-home tech-enabled advertising and experiential media sector has resulted in opportunities for debt lenders to secure asset financing agreements. 

Founders and shareholders in the out-of-home tech-enabled advertising and experiential media industry should be aware of fundraising opportunities in the sector, particularly from US-based debt lenders.

Sources: Pitchbook Data, Jahani and Associates (1), (2) Forbes, The Drum.

Battery Energy Storage Systems (BESS) Technology Capital Market Transactions

Between Q1 2020 and Q2 2024, $15 billion was deployed in the battery energy storage systems (BESS) technology sector. BESS technology captures and stores energy that is later discharged when required. BESS is critical for renewable energy sources such as wind and solar power, as collection is inconsistent and depends on weather conditions. BESS technology is software that is used to monitor and control hardware systems. As renewable energy rises in prominence, BESS technology will play a critical role in ensuring the widespread adoption and usability of the energy created.  

Most transactions conducted and capital invested were by US-based investors, with 40% of all capital invested. Significant capital has been invested in early stage and growth-stage companies in the sector. There has also been notable early stage M&A activity and secondary transactions in the sector, highlighting the abundance of exit opportunities.  

BESS founders and shareholders should be aware of fundraising opportunities presented by US-based investors and possible exit opportunities.

• Between Q1 2020 and Q2 2024, $15 billion was deployed across 250 transactions in the BESS sector. The average transaction value was $58 million, highlighting the volume of transactions in middle and lower-middle markets. 
• The most significant deployment of capital, $2.9 billion, occurred in Q4 of 2023 across 19 transactions with large private equity transactions driving investment.
• The largest deal count occurred in Q2 2023 with 24 transactions. Deal count and capital invested in the sector have accelerated since the start of 2022. The positive trend indicates an appetite for transactions in the sector and demand for innovation in BESS technology. 
• Two of the largest transactions were conducted by Plus Power. The company raised $1.8 billion in project financing in October 2023. Plus Power was acquired by OMERS Private Equity and a syndicate of other financial investors in a leveraged buyout for $1.5 billion on January 4, 2024.    

• Venture capital saw a high level of transactions accounting for 28% of deals in the sector; 72 venture capital transactions occurred in the sector in which $412 million was deployed.  
• Transactions by private equity firms dominated capital invested in the BESS technology sector. Across 59 transactions, $3.5 billion was deployed. The average transaction size of $59 million indicates an appetite for deals in the middle and lower-middle markets.
• Mergers and acquisitions accounted for $2.2 billion of capital deployed in the sector across 115 transactions. The average transaction size of under $20 million shows the demand for smaller strategic acquisitions and the abundance of early stage M&A deals. 
• Over $1.5 billion was invested in secondary transactions highlighting the exit opportunities available to BESS technology founders and shareholders.

• US-based investors dominated the capital invested in the battery energy storage systems sector, with 40% of capital deployed ($5.7 billion). US-based investors conducted a significant portion, 31%, of transactions, with 78 complete and announced deals. This could be due to a variety of factors, including the demand for onshore or nearshore manufacturing facilities against the backdrop of rising geopolitical tensions and supply chain concerns. Similarly, the demand could be driven by the growth of the clean technology sector and demand for storage systems. 
• European investors contributed $4.6 billion across 78 transactions with an average deal size of under $58 million. This implies an abundance of smaller transactions, indicating the early stage nature of the sector and the demand for energy storage technology. 
• Investors in developed nations such as Canada, Australia, and New Zealand contributed significantly to the capital invested in the BESS technology sector. The small number of transactions in the sector shows that a small number of large transactions occurred in these regions.
• The rest of the world exhibited a noticeable spike in deal count but an exceedingly small share of capital invested. This implies a wide distribution of smaller deals across various countries that are not individually listed. These smaller markets collectively engaged in a considerable number of BESS transactions, but each deal tended to be small, reflecting diverse capital market activities.

Deal Spotlight:

AMPERECLOUD

Amperecloud is the developer of a renewable energy platform designed to monitor energy parks, solar plants, wind farms, and battery energy storage systems. The company’s platform offers direct marketing, park control, data logger, monitoring, tickets, master data, maintenance modules, and reporting systems, enabling businesses to make their management and direct marketing of renewable energies cost efficient and easy to apply. 

The company raised $4 million of venture funding through Series A equity on July 26, 2024. Encevo led the round with Vireo Ventures, Point Nine Capital, and other undisclosed investors also participating.

 

Capital invested in the BESS sector is dominated by US-based investors. Developed markets have similarly invested in the sector. The demand for energy storage solutions in these markets is driven by the increased adoption of renewable energy.

There is a relatively even distribution of deal count between venture capital transactions, private equity transactions, and mergers and acquisitions. This showcases significant capital market opportunities available to BESS companies at all stages of growth. However, the abundance of smaller M&A and secondary transactions highlights the exit opportunities available in the sector.

Sources: Pitchbook Data, Jahani and Associates (1), (2) National Grid, ABB, Siemens Energy.

Enterprise Telecom Communication Services and Solutions M&A Transactions and Valuations

Between Q1 2020 and Q2 2024, acquirers deployed $56 billion in enterprise telecom communication services and solutions. The sector encompasses all levels of enterprise Wi- Fi connectivity, telephony, communications IT infrastructure, and related communication services for businesses.

Most transactions conducted and capital invested in the enterprise telecom communications services and solutions sector were by European-based acquirers. European acquirers contributed $26 billion across 201 transactions, highlighting their appetite for larger transactions. North American acquirers also contributed significantly with 35% of all capital invested in the sector across 119 transactions.

Strategic mergers and acquisitions contributed to the majority of transactions and capital invested in the sector with an average deal size of under $90 million. This highlights the appetite for middle-market strategic acquisitions and add-ons. Buyout and leveraged buyout transactions accounted for approximately one-third of all deals, with an average size of over $160 million.

Enterprise telecom communication services and solutions founders and shareholders should be aware of exit opportunities presented by strategic acquirers from Europe and North America.

• The valuation multiples are based on a sample set of publically listed podcasting and podcast advertising companies and M&A transactions in the sector. The data was collected on August 29, 2024.
• The sample set trades at an enterprise value to EBITDA multiple range of between 5x and 21x with an increase in average multiples as the enterprise value increases.
• Average enterprise value to revenue multiples ranged from 1x and 5x.      

• The median transaction size ranged widely with peaks of over $200 million seen in Q4 2020, Q2 2020, and Q2 2024. This was driven by large transactions conducted by strategic acquirers. 
• The median deal size was under $50 million for 9 of the 16 quarters between the start of 2020 and the end of 2023. This could indicate an abundance of activity in the lower middle markets and an appetite for smaller transactions.   
• Since Q4 2023, the median transaction size has increased significantly, which could signal the rebound of large acquisitions in the sector and an increase in capital available for acquisitions. 

• Between Q1 2020 and Q2 2024, $56 billion was deployed across 424 enterprise telecom communication services and solutions acquisitions. The average transaction value was $132 million, highlighting the volume of transactions in middle and upper-middle markets.  
• The most significant deployment of capital, $15 billion, occurred in Q2 of 2021. Several large strategic acquisitions in Europe drove the large capital outlay in both Q2 of 2021 and Q3 of 2020.   
• While the deal count shows variability, it remains above 16 per quarter. This consistency indicates a stable interest in deal-making, even as the investment amounts fluctuate. The exception was Q2 of 2020 when only 11 transactions were conducted. This was likely driven by market uncertainty caused by the pandemic and economic lockdowns. The largest deal count in the enterprise telecom communication services and solutions occurred in Q1 of 2022 with 34 M&A transactions.

• Transactions by strategic acquirers in M&A transactions dominated the sector. They contributed $31 billion of capital invested in the sectors while conducting 288 transactions. The average transaction size of $90 million highlights the appetite for middle-market acquisitions. 
• Buyouts and leveraged buyouts accounted for $19 billion of capital invested across 119 M&A transactions in the enterprise telecom communication services and solutions industry. The average transaction size of $160 million indicates the appetite for private equity acquisitions in the uppermiddle market. 
• Add-ons and other transactions accounted for less than 10% of capital deployed respectively.

• European-based acquirers dominated the capital invested in the enterprise telecom communication services and solutions sector, with over $26 billion across 201 transactions. This could be due to a variety of factors, including the demand for upgrading legacy infrastructure, larger margins in Europe, or the abundance of smaller firms leading to role-up opportunities.  
• Acquirers based in Italy, the United Kingdom, and Germany were the most active in the sector by deploying 13%, 11%, and 5% of total capital respectively.
• North American acquirers, particularly in the US and Canada, conducted roughly one-third of capital invested ($20 billion) and deal count (133) in the sector. The dominance of large telecommunication companies in the sector may affect the competitiveness of the enterprise solutions sector leading to fewer acquisition targets.
• The rest of the world exhibits a noticeable spike in the deal count, but an exceedingly small share of the capital deployed. This implies a wide distribution of smaller deals across various countries not individually listed. These smaller markets collectively engage in a considerable number of enterprise telecom communication services and solutions transactions, but each deal tends to be small, reflecting diverse capital market activities.

Deal Spotlight:

DALY SYSTEMS

Daly Systems is a UK-based provider of telecommunications solutions for businesses. The company offers connectivity, telephony solutions, cloud solutions, infrastructure, IT services, and other related services, providing clients with customized enterprise solutions.

The company was acquired by Onecom for an undisclosed amount through their financial sponsors LDC and Ares Management.
For more information on how transaction structures impact seller liquidity, see Jahani and Associates’ article here.

 

Enterprise telecom communication services and solutions include enterprise Wi-Fi connectivity, telephony, communications IT infrastructure, and related communication services. The sector is dominated by large acquisitions by European strategic acquirers and smaller transactions conducted by North American acquirers. 

Enterprise Telecom Communication Services and Solutions companies should be mindful of exit opportunities. EBITDA multiple in the sector ranged between 5x and 21x in the period with technology and intellectual property contributing significant increases in multiples. 

Sources: Pitchbook Data, Jahani and Associates (1), (2).