Dykema’s M&A Deal Volume Remains Strong in Second Quarter

When we reported our first quarter results, we noted that, despite the general slowdown in the M&A market, we had not seen a significant drop in our M&A activity (we closed 45 deals in the first quarter, which was up sharply from the first quarter of 2022).
 
During the recently completed second quarter, we closed 27 deals, an increase from the 17 deals closed in the second quarter of 2022. Although deal volume increased, average deal size dropped in the second quarter to approximately $12,000,000, compared to approximately $20,000,000 in the first quarter of 2023 and $32,000,000 in the second quarter of 2022.

The second quarter transactions included companies in the manufacturing, distribution, stone quarry, and dental service industries.

With half of 2023 in the books, it remains difficult to predict how this year will turn out from an M&A perspective. Overall economic conditions have held up better than expected and economic forecasts have become much less bleak than earlier in the year. If those sunnier forecasts come to fruition, this may bode well for a strong second half of the year for M&A activity. Time will tell.

Below are the tombstones from some of our second-quarter deals.