Deal Flow Report: Utah business deals reach record value in 2023

The overall disclosed value of the business transactions in Utah reached an all-time high in 2023 despite a drop in the total number of transactions. Those results were reported in the recently released Deal Flow Report from business networking organization MountainWest Capital Network (MWCN). According to the study, the dollar value of 2023 deals grew 10-fold from 2022 to 2023 — from $3.7 billion in 2022 to $39.2 billion, beating the previous annual record of $31.2 billion, set in 2021.

The MWCN Deal Flow Report tracks equity-related financial transactions throughout the state, including mergers and acquisitions, public deals and minority investments. It does not report on transactions that were either confidential or otherwise not publicly disclosed.

In 2023, MWCN tracked 329 transactions with an average value of mergers and acquisitions at $1.4 billion, a 50 percent 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 high 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 report found.

Study authors said 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 percent 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 percent of total transactions, and services dropped from 10 percent to 2 percent.

The full report can be found at https://www.mwcn.org/deal-flow/.