Marketplace Minute: Q2 2023

May 4, 2023

While the US economy grew by 1.1% in the first quarter of 2023, several major events brought headwinds into the transaction markets, including trouble in the financial sector and the shutdown of SVB and Signature Banks. However, based on publicly available data, we are seeing a rebound in transaction multiples, outlined in the graphs below.

1. Retail and consumer products

Transaction volume in Q1 2023 was down but multiples rebounded to the low double digits.

2. Healthcare

With the global economy battling a large inflationary wave, the healthcare industry has faced its own challenges due to wage inflation and increased operating costs. On the bright side, more recent data implies that there is a silver lining. (Check out our recent article, “6 Healthcare Insights from Q4 2022 and What They Mean for You,” for a thorough summary.)

While transactions were down in Q1 2023, multiples rebounded to levels we saw previously in the middle of last year, led by CVS’s acquisition of Signify Health.

3. Manufacturing and distribution

Although Q1 2023 transaction volume picked up from Q4 2022, it is still off compared to the levels we saw in previous quarters of 2022. On the other hand, multiples rebounded, on the heels of Olympus Partners’ sale of Liqui-Box Corporation to Sealed Air; Gryphon Investors’ sale of Wittichen Supply to Beijer Ref; and Blackrock’s sale of Altra Industrial Motion to Regal Rexnord, all being consummated at ~13.0x.

4. Software

Q1 2023 software transactions gained steam from Q4 2022 levels, although revenue multiples pulled back slightly. Deal execution saw a mix of large and small deals with two venture capital/private equity deals trading hands: Blackrock’s sale of Coupa Software to Thoma Bravo and Vista Equity Partners’ acquisition of Duck Creek Technologies.

Want to explore this data in further detail and determine what it means for you? Get in touch with our advisory team today.


Investment advisory services are offered by Aprio Wealth Management, LLC, a Securities and Exchange Commission Registered Investment Advisor.  Opinions expressed are as of the current date (May 1, 2023) and subject to change without notice. Aprio Wealth Management, LLC shall not be responsible for any trading decisions, damages, or other losses resulting from, or related to, the information, data, analyses or opinions contained herein or their use, which do not constitute investment advice, are provided as of the date written, are provided solely for informational purposes and therefore are not an offer to buy or sell a security. This commentary is for informational purposes only and has not been tailored to suit any individual. References to specific securities or investment options should not be considered an offer to purchase or sell that specific investment. 

This commentary contains certain forward-looking statements. Forward-looking statements involve known and unknown risks, uncertainties and other factors which may cause the actual results to differ materially and/or substantially from any future results, performance or achievements expressed or implied by those projected in the forward-looking statements for any reason. 

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About the Author

David Zafft, CPA, CFA

David Zafft is a partner in Transaction Advisory Services at Aprio. He specializes in helping private equity firms, family offices and CFOs of middle-market businesses in healthcare, life science, technology, manufacturing and distribution and industrial industries deploy capital or prepare for pending transactions. He helps clients gain a deeper understanding of the businesses they are looking to buy or sell, which includes providing a granular overview of revenue, earnings and cash flow drivers.

William Foote

William Foote is a partner in Forensic Services and Transaction Advisory Services at Aprio. He is a CPA with 25 years of assurance and financial advisory services experience serving clients in the government contracting, technology, real estate & construction, and professional services industries. He assists clients with complex valuation projects, financial disputes, accounting investigations and financial due diligence.