Thursday, October 17, 2013
Q3 2013 KEY HIGHLIGHTS
The most active financial sponsor year-to-date was Providence Equity Partners with four industry transactions, one of which occurred in Q3 2013. The largest of these four deals was the acquisition of Informa’s five corporate training businesses in Q3 2013 for $165 million.
The highest value transaction during Q3 2013 was TPG Capital’s announced acquisition of TSL Education Ltd. for $549 million.
Q3 2013 KEY TRENDS
Total transaction volume in Q3 2013 remained nearly constant over Q2 2013, from 66 to 68.
Total transaction value in Q3 2013 fell by 39 percent over Q2 2013, from $3.3 billion to $2.0 billion. Although aggregate value decreased, Q3 2013 was responsible for the highest median deal value on a quarterly basis throughout the past two years.
MULTIPLES & VALUE TRENDS
The median revenue multiple from 2012 through the 1st 3 Quarters of 2013 decreased by 12 percent, from 1.7x to 1.5x.
The median EBITDA multiple from 2012 through the 1st 3 Quarters of 2013 declined by 21 percent, from 13.5x to 10.6x.
TOP TEN DEALS THROUGH Q3 2013
The top ten deals by value have seen six new additions since our half year report, two of which were in the Childcare Services segment: Teachers Private Capital's acquisition of Busy Bees Childcare Ltd. and Navis Capital Partners' acquisition of Guardian Early Learning Group.
These six transactions, with an aggregate value of $1.5 billion, represented 26 percent of transaction value in the 1st 3 Quarters of 2013 and 75 percent of Q3 2013 transaction value.