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Trend Reports

2012 Mid Year

 
 

2012 l 1st Half l Trends Report l Private Equity Industry

Friday, July 20, 2012

1ST HALF 2012 KEY HIGHLIGHTS

  • Advent International Corporation and GS Capital Partners' announced acquisition of TransUnion LLC, a subsidiary of Madison Dearborn Partners, was the largest transaction for 1st Half 2012, with an acquisition price of $3.12 billion.
  • The most active acquirers were Hellman & Friedman LLC and Vista Equity Partners. Both Private Equity firms had seven acquisitions each.
  • The segment with the largest transaction volume was Health and Pharmaceutics, which was responsible for 34 transactions.

1ST HALF 2012 KEY TRENDS

  • Total transaction volume in 1st Half 2012 increased by two percent over 2nd Half 2011, from 219 to 224.
  • Total transaction value in 1st Half 2012 decreased by eight percent over 2nd Half 2011, from $18.90 billion to $17.33 billion.
  • The median revenue multiple declined from 2.0x in 2nd Half 2011 to 1.4x in 1st Half 2012, while the median EBITDA multiple fell from 12.4x to 9.5x.

M&A Market Overview

Berkery Noyes tracked 983 transactions between 2010 and 1st Half 2012, of which 288 disclosed financial terms, and calculated the aggregate transaction value to be $60.66 billion. Based on known transaction values, we project values of 695 undisclosed transactions to be $15.30 billion, totaling $75.96 billion worth of transactions tracked over the past two and a half years.

Of all the Private Equity transactions within the Information Industry during the last two and a half years, transactions valued at more than $160 million garnered a median enterprise value multiple of 2.1x revenue. This was 110 percent greater than for companies with transaction values between $10 to $20 million, as they captured a median enterprise value multiple of 1.0x revenue.

The disclosed median revenue multiple for all segments combined for the timeframe covered in this report was 1.67x revenue.



 

Transaction Volume/Value & Multiples

Transactional Analysis

M&A Dynamics by Acquirer Type

Purchaser Analysis

Transactions Involving an Online Component

Footnotes