Missouri PE Deal Report

1 R. L. Hulett PE deal volume in Missouri increased 4.0% over 1H 2022 but declined 46.4% to 52 deals from 97 during the same period in the prior year. Market Recap Add-ons remained the largest type of transaction, accounting for 72.2% of total PE transactions in 2H 2022 but was down as a percentage of overall deals from 81.3% in 1H 2022. PE firms continue to use add-ons to scale platform investments and "buy down" their entry multiples. •⚫ The business products and services sector increased as a percentage of total completed transactions to 51.9% of deals in 2H 2022 from 35.4% in 1H 2022. The largest year-over-year increase was the financial services sector, which rose to represent 10.8% of deals in 2022 from 8.0% in 2021. This increase is primarily driven by consumers wanting to mitigate risky investments in response to the possibility of a global recession in 2023. ● Corporate acquisitions were the most popular exit route in 2H 2022 for PE-owned platform companies and increased to 75.0% of total exits from 71.4% in 1H 2022. • The EV/Revenue valuation multiple increased to 2.0X in 2022 from 0.8X in the prior year. There were no reported valuation multiples available in 2022 for EV/EBITDA. Pg

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