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Trend Reports

2016 Mid Year

 
 

2016 l 1st Half l Trends Report l Private Equity Industry

Monday, July 25, 2016

1ST HALF 2016 KEY HIGHLIGHTS

  • The largest deal in 1st Half 2016 was Thoma Bravo's announced acquisition of Qlik Technologies, Inc., a provider of business intelligence software and data visualization solutions, for $2.58 billion.
  • Vista Equity Partners was responsible for two of the industry's top three highest value transactions year-to-date. This consisted of Vista Equity's announced acquisition of Marketo, Inc., an automated marketing software company, for $1.62 billion; and Cvent, Inc., a cloud-based enterprise event management business, for $1.34 billion.

1ST HALF 2016 KEY TRENDS

  • Total transaction volume in 1st Half 2016 increased ten percent over 2nd Half 2015, from 300 to 329.
  • Total transaction value in 1st Half 2016 declined by 46 percent over 2nd Half 2015, from $38.42 billion to $20.81 billion. Of note, seven of the industry's top ten largest deals last year occurred during the 2nd Half 2015.
  • The median revenue multiple improved from 1.7x in 2nd Half 2015 to 2.7x in 1st Half 2016. Median transaction value remained nearly constant during this timeframe.

M&A Market Overview

Berkery Noyes tracked 1,508 private equity transactions between 2014 and 1st Half 2016, of which 268 disclosed financial terms, and calculated the aggregate transaction value to be $99.87 billion. Based on known transaction values, we project values of 1,240 undisclosed transactions to be $38.04 billion, totaling $137.91 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 2.3x revenue and 11.6x EBITDA.

Transactions between 2014 and 1st 2016 with enterprise values above $160 million received a median revenue multiple of 1.5x, whereas those in the $10-$20 million range had a median revenue multiple of 3.1x.



 

Transaction Volume/Value & Multiples

Transactional Analysis

M&A Dynamics by Acquirer Type

Purchaser Analysis

Transactions Involving an Online Component

Footnote