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Trend Reports

2016 Third Quarter

 
 

2016 l 3rd Qtr l Trends Report l Education Industry

Monday, October 24, 2016

Q3 2016 KEY HIGHLIGHTS

  • The most active market segment in Q3 2016 was K-12 Media and Tech with 22 transactions.
  • The combined Professional Training Technology and Services segments, with 26 deals, accounted for one-quarter of aggregate volume in Q3 2016.
  • Strategic acquirers represented 72 percent of the industry's total volume and 52 percent of total value year-to-date.

Q3 2016 KEY TRENDS

  • Total transaction volume in the 1st 3 Quarters of 2016 declined by nine percent over the 1st 3 Quarters of 2015, from 323 to 295. However, there was a four percent quarterly uptick, from 99 to 103.
  • Total transaction value in the 1st 3 Quarters of 2016 fell by 70 percent over the 1st 3 Quarters of 2015, from $14.4 billion to $4.3 billion. Of note, there were five acquisitions with disclosed values above $500 million in the 1st 3 Quarters of 2015, compared to one such deal in the 1st 3 Quarters of 2016.

MULTIPLES & VALUE TRENDS

  • The median revenue multiple stayed about the same on a year-over-year basis at 2.0x. Median transaction value also remained nearly constant during this timeframe at $18 million.

TOP TEN DEALS THROUGH Q3 2016

Berkery Noyes tracked 1,093 Education transactions between 2013 and 2016 on a 1st 3 Quarters basis, of which 233 disclosed financial terms, and calculated the aggregate transaction value to be $28.7 billion.

Based on known transaction values, we project the values of 860 undisclosed transactions to be $6.3 billion, totaling $35 billion worth of transactions tracked over the past 45 months.



 

M&A Dynamics by Transaction Type