DATA AS OF DECEMBER 31ST, 2021
A A VIEW VIEW OF OF 2021: 2021: FLORIDA FLORIDA PE PE DEAL DEAL REPORT REPORT
THIS INFOGRAPHIC REPORT AND ALL ASSOCIATED CHARTS, PREPARED BY CASSEL SALPETER & CO. WITH DATA FROM PITCHBOOK AS OF DECEMBER 31ST, 2021, PROVIDES A TOP-LEVEL EXAMINATION OF PRIVATE EQUITY ACTIVITY IN FLORIDA. IT OFFERS IN-DEPTH INSIGHT AND DATA-DRIVEN ANALYSIS OF THE STATE’S PE TRENDS, WITH A FOCUS ON DEAL FLOW ACTIVITY. THIS REPORT INCLUDES ALL PE INVESTMENTS (INCLUDING BUYOUT, ADD-ON, GROWTH, AND RECAPITALIZATION), EXCLUDING REAL ESTATE INVESTMENTS, MADE INTO TARGET COMPANIES WITH HEADQUARTERS IN FLORIDA.
Florida PE Deal Flow by Year
2010
176
20 11
182
201 2
237
2013
203
2014
257
2015
288
2016
279
2017
343
2018
355
2019
356
2020
402
2021
526 0
50
100
150
200
250
300
350
400
450
500
550
600
2021 was an unprecedented year for Florida PE deal flow. Many industries, if not the majority, experienced intense competition and higher than average multiples as a result. One can assume this frenzy is, at least in part, driven by PE firms trying to capitalize on high growth profiles and low interest rates.
Florida PE Deal Flow by Region
100% TA M PA B AY
90% 80%
SOUTHWEST
70% 60%
SOUTHEAST
50% PA N H A N D L E
40% 30%
NORTHEAST
20% 10%
CENTRAL
0% 2010
2011
2012
2013
2014
2015
2016
2017 2018 2019 2020 2021
The Southeast region remains the leading area for Florida dealmaking, accounting for approximately 39% in 2021. Central and Tampa Bay regions followed, each accounting for approximately 19% of total Florida PE deals in 2021. The Northeast and the Southwest each accounted for approximately 10%, in line with 2020 percentages. The Panhandle once again saw the lowest percentage of Florida PE deals, accounting for approximately 3% in 2021.
Florida PE Deal Flow by Quarter 160
154
150 138
140 130
137
124
127
120 110
104
100
94
90
82
80 70
61
60 50 40
81
50
48 40
50
53 53
60 58 49
84
81 64 57 55
85
83
59
96 89 90
88 76
64
103
99
81
79
78
73
68 68
67
60
49
43
38
36 28
30 20 10 0
1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q
2010
2011
2012
2013
2014
2015
2016
2017
2018
2019
2020
2021
Every quarter in 2021 saw a robust amount of PE deals in Florida, and all quarters starting with Q4 2020 has surpassed any previous years quarters since we began documenting the data in this report. As the majority of the deal making community is predicting a slowdown or more normalized market at some point, no one knows when that will occur.
Florida PE Deal Flow by Type
100% P L AT F O R M C R E AT I O N
90% 80%
G R O W T H / E X PA N S I O N
70% RECAP
60% 50%
ADD-ON
40% BUYOUT/LBO
30% 20% 10% 0% 2010
2011
2012
2013
2014
2015
2016
2017
2018
2019
2020
2021
As we have seen in prior years, Add-On’s drove Florida PE deal activity in 2021, accounting for approximately 59%. This is the highest percentage we have seen to date in our reports. Buyout/LBO’s and PE Growth/Expansion accounted for approximately 21% and 19%, respectively. While PE Growth/Expansion percentage is in line with prior years, Buyout/LBO percentage is down quite a bit, down from approximately 29% in 2020.
Florida PE Deal Flow by Sector
100% 90%
M AT E R I A L S & RESOURCES
80%
IT
70%
H E A LT H C A R E
60% 50%
FINANCIAL SERVICES
40%
ENERGY
30%
B2C
20%
B2B
10% 0% 2010
2011
2012
2013
2014
2015
2016
2017
2018
2019
2020
2021
B2B remained the dominant sector in Florida PE deal activity in 2021, accounting for approximately 37%. The Healthcare sector also remained at a high percentage, accounting for approximately 21% of Florida PE deals in 2021. Surprisingly, IT sector percentage decreased slightly from 16% in 2020 to 14% in 2021. B2C remained steady at approximately 16% in 2021.
Florida Buyouts vs. Add-ons 450
74.3%
400 350
67.3% 60.6%
67.9% 66.2%
60.5%
66.8%
66.8%
70%
60.4% 312
57.1%
50%
204
199
60%
40%
136
30%
113
80
99
86
89
77
20% 61
101 49
60
54
50
77
80
83
118
150
136
151
200
182
227
250
100
80%
108
300
69.0%
71.8%
0
10% 0%
2010
2011
2012
2013
BUYOUT/LBO
2014
2015
ADD-ON
2016
2017
2018
2019
2020
2021
ADD-ON %
As discussed previously in this report, Add-On’s propelled Florida PE deal activity and accounted for the majority of Florida PE control investments in 2021. Hitting an all-time high in our records, Add-On’s accounted for approximately 74%, as PE firms in Florida continue with their tried-and-true buy-and-build strategy.
PE-Backed Florida Companies 600
571 556
500
477
496
442 390
400
359 311
300
271
320
340
287 YEAR OF INVESTMENT
244 249 217
200
100
2000-2020
170
72
84
96
110
121
2015-2021
138
2009-2014 2000-2008
0 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010
2011
2012
2013 2014 2015 2016
2017 2018 2019 2020 2021
Florida PE-backed company inventory continued to grow, with an additional 15 (net) new PE-backed Florida companies. This growth has seemed to slow in comparison to prior years, however it could just be that the amount of PE-backed Florida company exits is greater in comparison to previous years.
Florida PE Exits by Type 100 8
90 3
80
2
33
33
39
53
42
37
29
2013
36
2012
32
27
34 25
19
31
20 10
32
24
12
6
16
22
40 30
6
21
2
30
4
50
3
33
5
60
4
51
70
33
3
0 2010
2011
Corporate Acquisitions
2014
2015
2016
Secondary Buyouts
2017
2018
2019
2020
2021
IPO
The primary exit route for Florida PE deals in 2021 was secondary buyouts, which continues with the new trend for the second year in a row, likely due to PE firms trying to spend dry powder. While globally IPOs and reverse mergers with SPACs seemed to boom, it was not the reflection in Florida according to our data from Pitchbook.
Florida-Based PE Firms 120
113
110
95
100 90
79 80
72
70
56
60
47
50 40 30
27
30
32
34
2012
2013
37
41
20 10 0
2010
2011
2014
2015
2016
2017
2018
2019
2020
2021
Not surprisingly, the number of PE firms with headquarters in Florida continued to skyrocket, with an additional 18 Florida-based PE firms since year-end 2020. We continue to hear of PE firms and companies in general moving their headquarters to Florida, and do not predict this trend to change in 2022 either.
METHODOLOGY
PRIVATE EQUITY DEALS This report includes all PE investments (buyout, growth, recapitalization, and add-on), excluding real estate investments, made into target companies, with headquarters in Florida. Only investments made directly by private equity firms or their portfolio companies are counted. Buyout deals are defined as transactions in which the PE investors receive controlling ownership stakes in the target companies. Growth deals are defined as minority investments in target companies. Add-on deals are defined as acquisitions by companies with private equity backing.
FLORIDA-BASED PRIVATE EQUITY FIRMS
PE-BACKED FLORIDA-BASED COMPANIES
This report includes PE firms with headquarters in Florida that were either actively investing or raising funds during the reported periods.
This report includes companies headquartered in Florida that are in part or in whole backed by PE firms.
Cassel Salpeter & Co. is a boutique investment banking firm focused on providing independent and objective advice to middle market and emerging growth companies.
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