M&A MARKET UPDATE APRIL 2021 U.S. MONTHLY REVIEW
Notable Trends in April 2021
Year-over-year capital invested decreased by 36.6%, however deal count increased by 9.1%. When compared to the previous month, capital invested increased by 50.4%, while deal count decreased by 18.4%. This marks the second month in a row with an increase in capital invested. Deal size hit a low for the year at only 444 deals made. Median deal size in the U.S. increased 198.6% year-over-year, due to last April being at the beginning of the Covid recession. Additionally, deal size is up by 29.4% compared to the previous month. This monthly increase shows that even though less deals are being completed, the median deal size remains upwards of $70 million for the seventh month in a row. The EV/EBITDA median has steadily increased for the past two months to 13.4x, which is up 31% compared to March. The continued decrease across deal count with higher deal sizes shows a reduction of smaller transactions taking place. Alternatively, the median EV/EBITDA growth shows investor sentiment increasing as companies are fetching higher prices on the market with the United States beginning to fully emerge from the COVID-19 pandemic.
