GCG Middle Market Update for Q1 2024

This report provides an analysis of the GCG Middle Market Update for the first quarter of 2024. It outlines the performance of middle market equities, which significantly lagged behind the S&P 500 index, recording a trailing 12-month return of (9.6)%, compared to the S&P's 33.0%. The report details sector performances, with Business Services and Healthcare showing relatively better returns, while Automotive faced the steepest decline at (51.5)%. The report also discusses trading multiples, noting a downward trend in median quarterly revenue and EBITDA multiples since their peak in March 2021. Furthermore, it documents the state of middle market M&A activity, indicating a decrease in both deal value and volume compared to previous quarters, attributed to rising interest rates and economic uncertainty. Despite this, the report suggests that capital availability remains robust, which may facilitate future M&A activity. The document concludes with a sector analysis, highlighting shifts in market share and the impact of external pressures on various industries.