Quick Look 72
New Buyers $6.4B
in Capital 67
New Intermediaries 505
in RevenueAxialMarket’s monthly activity report provides real-time analytics and transparency into lower middle market M&A activity. You can subscribe here to receive our monthly activity report, weekly articles, and our quarterly research publication, MarketPulse.
Sell Side Marketplace Activity
In the last 90 days, 505 opportunities with more than $7B in Revenue and over $800M in EBITDA were delivered via AxialMarket from 176 unique Intermediary sources. This represents a 12% increase in dealflow activity, 27% increase in aggregate revenue, and 7% increase in aggregate EBITDA.
During this same period, 67 new Member Advisory firms joined AxialMarket. These new members, which include M&A consultants, super-regional investment banks, boutique advisory firms, and qualified business brokers/finders, have already delivered 135 opportunities to the AxialMarket platform totaling over $2.7B in Revenue and $280M in EBITDA.
Companies headquartered in the Southeast generated the largest volume of dealflow over the past 90 days, followed closely by companies headquartered in the Pacific, Midwest, and Southwest region of the US.
This chart displays the relative volume of opportunities taken to market by AxialMarket Members over the past 90 days, segmented by industry.
Over 27% of dealflow is classified as opportunities within the Capital Goods sector, a decrease from 29% over the previous 90 day period. Telecommunications and Media demonstrated the largest percentage increase in dealflow volume increasing by 288% to 7.5% of overall marketplace activity.
This chart expresses the average level of interest per opportunity within each industry sector by displaying number of NDAs executed per deal – normalized. Opportunities in the Materials sector saw the greatest amount of interest per opportunity on average, with Energy following in per unit activity. Both saw a 3X increase over the previous 90 day period.
The purpose of the above chart is to isolate the amount of buyer interest in a particular category independent of the number of deals that have come to market in that vertical, which otherwise influences the perceived activity in each space.
This chart displays the percentage of NDAs executed by industry by AxialMarket Members over the past 90 days. Capital Goods — which encompasses Aerospace & defence, Industrial Machinery, and Electrical Components & Equipment – saw the greatest amount of activity, with opportunities in this vertical accounting for over 23% of all buyer interest. In addition, Healthcare saw the largest increase in demand doubling the total NDAs executed within AxialMarket over the past 90 days. Consumer Services saw the largest decline in interest from buyers.
72 new Buyers joined AxialMarket over the last 90 days, comprising 28 Financial Buyers and 44 Strategic Buyers. The financial buyers include 16 private equity groups, six search funds, three family offices, one fundless sponsor, one holding company, and one hedge fund collectively comprising over $6.4B in capital.
The strategic buyers fall within the Business Services, Capital Goods, Consumer Goods & Services, Energy, Financial, Healthcare, Industrials, Information Technology, and Materials industries. These buyers are focused on making acquisitions between $5M and $50M in revenues, and EBITDA in excess of $1M.
Summary of Buyer Profiles on AxialMarket
Members use AxialMarket’s Buyer Presence and Profiling tools to articulate and communicate their acquisition strategies to the seller community across multiple sub-industries, transaction sizes, geographies, and transaction types.
The chart below details the industries in which AxialMarket buyers seek to make acquisitions, as identified by their transaction profiles. Over the last 90 days, the most sought after companies were within Industrials (67%), which includes Capital Goods, Commercial and Professional Services, and Transportation & Logistics, followed by Consumer Discretionary (55%). Both saw a 3 percentage point decline in demand.
The two charts below highlight the target revenue and EBITDA ranges detailed in the Buyers’ transaction profiles. 90% of AxialMarket buyers indicate their desired revenue range for target acquisitions fall between $15M and 50M.
As seen in the second graph, 86% are seeking opportunities whose EBITDA fall between $2-5M, closely followed by $5-15M (79%). This includes transaction profiles articulating private equity platform acquisitions, portfolio company add-on acquisitions and strategic buyer business unit transaction profiles.