Summary
This document is a technical report presenting the 10th edition of the Middle Market M&A SurveyBook, which analyzes key transaction terms from over 130 middle market private target acquisition agreements signed in 2023 and the first half of 2024. The report serves as a guide for buyers, sellers, and deal professionals to understand current market conditions regarding negotiation terms in private target acquisition agreements. It focuses on critical deal terms, particularly the indemnity package, which addresses potential post-closing liabilities and the parameters for buyers to recover purchase prices. The survey also examines the role of representation and warranty (R&W) insurance, noting that approximately 57% of transactions included such insurance. The report highlights trends in M&A activity, indicating a decline in deal volume due to factors like high interest rates and geopolitical uncertainties, while also suggesting a potential rebound in the second half of 2024 driven by pent-up demand and strategic necessities.
