The U.S. private equity industry experienced strong deal activity through 3Q of 2018. By September 30, 3,501 deals closed for a total of $508.8 billion, representing year-to-date increases of 2.1% and 3.4%, respectively over the first three quarters of 2017. The EV/EBITDA multiples for buyouts remain elevated at 11.9x, which has helped to push the median buyout size to an all-time high of $183.0 million, per Pitchbook 3Q 2018 US PE Breakdown.

Overall, healthcare and IT experienced an uptick in the number of deals, which outpaced B2C and energy, although IT lagged with a shortage of mega-deals. Healthcare and B2B lead the way in the number of mega-deals. The trend of PE firms buying insurance assets also accelerated during 3Q.

We expect valuations in most industries to remain elevated, and in the near term, we are watching the impact of U.S. trade wars, the Committee on Foreign Investment in the U.S. (CFIUS), U.S. economic growth, and U.S. equity and debt markets on transaction activity.

CohnReznick is pleased to share the following recent transactions from our Transactional Advisory Services team. Read more about our services below.

Completing a merger. Acquiring or selling a business. These are complex, stressful deals with dramatic impact on how your company goes forward. Buyers need to ensure target firms fit their strategy, are reasonably priced, and will integrate effectively. Sellers focus on getting the best possible price - and managing the business through transition. CohnReznick's Transactional Advisory Practice provides the due diligence, acquisition integration, and other advisory services to assess risks and rewards and navigate transaction intricacies.