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Transactions

2013 Mid Year

 
 

2013 l 1st Half l Trends Report l Private Equity Industry

Tuesday, July 23, 2013

1ST HALF 2013 KEY HIGHLIGHTS

  • The largest transaction in 1st Half 2013 was the announced acquisition of BMC Software by a private investor group, led by Bain Capital and Golden Gate Capital, for $6.81 billion.
  • The most active acquirer year-to-date was Vista Equity Partners with seven transactions: SuccessEHS, ISS Group Ltd., Websense, Inc., Care2Learn.com, Lanyon, Inc., Expesite, Inc., and MED-PASS, Inc. The largest of these seven deals was the acquisition of Websense, Inc. for $942 million.

1ST HALF 2013 KEY TRENDS

  • Total transaction volume in 1st Half 2013 decreased by 15 percent over 2nd Half 2012, from 234 to 198.
  • Total transaction value in 1st Half 2013 fell by 22 percent over 2nd Half 2012, from $24.45 billion to $18.99 billion. Although aggregate value declined, the two largest financially sponsored transactions in the Information Industry during the past two and a half years occurred in 1st Half 2013.
  • The median revenue multiple moved slightly from 1.9x in 2nd Half 2012 to 2.0x in 1st Half 2013. The median EBITDA multiple increased from 9.9x in 2nd Half 2012 to 11.2x in 1st Half 2013.
  • The number of secondary buyouts in 1st Half 2013 decreased by 55 percent over 2nd Half 2012. This came in the aftermath of a 26 percent increase between 2011 and 2012.

M&A Market Overview

Berkery Noyes tracked 1,093 transactions between 2011 and 1st Half 2013, of which 290 disclosed financial terms, and calculated the aggregate transaction value to be $84.88 billion. Based on known transaction values, we project values of 803 undisclosed transactions to be $13.64 billion, totaling $98.51 billion worth of transactions tracked over the past two and a half years.

Disclosed median revenue multiple for all segments combined in this report in the last 30 months were 1.8x revenue and 9.8x EBITDA.

The peak for deal volume over the past two and a half years occurred in 1st Half 2012, whereas value reached its zenith in 2nd Half 2012.



 

Transaction Volume/Value & Multiples

Transactional Analysis

M&A Dynamics by Acquirer Type

Purchaser Analysis

Transactions Involving an Online Component

Footnotes