Utah's deal
environment overcomes economic headwinds, remains strong with AI as
a breakout category
SALT
LAKE CITY, May 16, 2024 /PRNewswire/ -- MountainWest
Capital Network (MWCN), today announced the results of its annual
Deal Flow Report, which tells a compelling story for Utah's strong financial business transactions.
While the total number of transactions dipped in 2023, the overall
disclosed value of the deals grew by 10x, from $3.7 billion in 2022 to $39.2 billion, beating the previous annual record
of $31.2 billion in 2021. MWCN's Deal
Flow Report is Utah's only
in-depth publication that tracks equity-related financial
transactions throughout the state — including mergers and
acquisitions, public deals and minority investments.
In 2023, MWCN tracked 329 transactions with an average value of
mergers and acquisitions at $1.4
billion, a 50% increase in value over 2022. Minority
investments grew modestly, from an average of $15.5 million in 2022 to $16.2 million in 2023, however still not at the
previous highs of $25.6 million in
2021. The booming popularity of AI contributed significantly to
overall deal volume, with 19 transactions coming from AI-focused
businesses.
The growth and record overall value of Utah's transactions can be attributed to
several prominent deals, including Extra Space Storage's
acquisition of Life Storage, Inc. for $12.7
billion, Silver Lake Technology Management's acquisition of
Qualtrics for $12.5 billion,
John Swire & Sons acquisition of
Swire Coca Cola for $3.9 billion and
NRG Energy's acquisition of Vivint Smart Home for $2.8 billion.
"The value of Utah's deals
really hit a great stride in 2023, rebounding from a challenging
prior year and showcasing the resiliency and diversity of our
state's economy and business environment," said Matt Bartholomew, MWCN's Deal Flow Chair. "With
deal volume remaining lower, on balance, nationally and in
Utah, particularly in the public
space, we see a great deal of potential for future growth,
particularly in majority and minority capital investments. These
types of deals are one of the engines that keep Utah ranked among the top states for business,
and we are encouraged to see the continued value acceleration."
Tech and software development continue to drive the state's
investments, with 43% of the total deals coming from prominent
Utah-based companies in those
industries. Consumer/retail and healthcare both also saw a slight
uptick to 15% of total transactions, and Services dropped from 10%
to 2%.
Now in its 27th year, the Deal Flow Report is a publication of
the MWCN, a nonprofit organization, created to foster a dynamic
flow of information about capital formation and distribution. It
does not report on transactions that were either confidential or
otherwise not publicly disclosed.
View the full 2023 MWCN Deal Flow Report at
https://www.mwcn.org/deal-flow/.
About MountainWest Capital Network
MountainWest
Capital Network is Utah's first
and largest business networking organization devoted to supporting
entrepreneurial success and dedicated to the flow of financial,
entrepreneurial and intellectual capital. Learn more at
www.mwcn.org.
View original content to download
multimedia:https://www.prnewswire.com/news-releases/utah-business-deals-reach-record-value-in-2023-despite-drop-in-volume-according-to-mountainwest-capital-network-302146139.html
SOURCE MountainWest Capital Network