Thursday, January 30, 2014
2013 Key Highlights
The most active financial sponsor was Vista Equity Partners with eighteen transactions in 2013. This included four deals with disclosed values over $500 million.
Four of the top ten highest value private equity deals in 2013 occurred in the Finance segment. The largest of these was Hellman & Friedman's acquisition of Applied Systems from Bain Capital for $1.8 billion in the Insurance subsector.
TPG Capital was the most active private equity firm in the Health segment with eight transactions in 2013.
2013 Key Trends
Total transaction volume in 2013 decreased by twelve percent over 2012, from 512 to 453. However, when compared to 2011, volume in 2013 underwent a four percent increase.
Total transaction value in 2013 declined by six percent over 2012, from $43.71 billion to $41.13 billion.
The median revenue multiple increased from 1.8x in 2012 to 2.3x in 2013. The median EBITDA multiple improved from 9.8x in 2012 to 11.5x in 2013.
In terms of secondary buyouts, or transactions completed between private equity firms, deal volume in 2013 decreased by 27 percent over 2012. This followed a 34 percent increase from 2011 to 2012.
M&A Market Overview
Berkery Noyes tracked 1,399 private equity transactions in the Information Industry between 2011 and 2013, of which 364 disclosed financial terms, and calculated the aggregate value to be $104.05 billion. Based on known transaction values, we project values of 1,035 undisclosed transactions to be $20.46 billion, totaling $124.51 billion worth of transactions tracked over the past three years.
The largest deal tracked by Berkery Noyes during the last 36 months was the acquisition of BMC Software by a private investor group, led by Bain Capital and Golden Gate Capital, for $6.69 billion in 2013.