1ST HALF 2020 KEY HIGHLIGHTS
The largest deal in 1st Half 2020 was Blackstone Group’s announced acquisition of iQ Student Accommodation, a UK-based student housing company that owns and operates 67 student premises in 27 towns and cities, for $6.02 billion.
1ST HALF 2020 KEY TRENDS
Total transaction volume in 1st Half 2020 declined by 13 percent over 2nd Half 2019, from 238 to 207.
In terms of acquirer type, strategic volume increased six percent in 1st Half 2020 over 2nd Half 2019, from 156 to 166. This was the highest level of strategic volume during the past 30 months. Meanwhile, private equity volume fell 50 percent, from 82 in 2nd Half 2019 to 41 in 1st Half 2020.
Total transaction value in 1st Half 2020 rose by 19 percent over 2nd Half 2019, from $7.57 billion to $9.01 billion.
The median revenue multiple dropped from 2.8x in 2nd Half 2019 to 2.2x in 1st Half 2020, which was in line with the industry’s median over the past two and a half years.
The segment with the largest rise in volume in 1st Half 2020 over 2nd Half 2019 was Professional Training Services with an 36 percent gain, from 44 to 60 transactions. This marked the sector’s peak volume level during the last 30 months.
M&A MARKET OVERVIEW
Berkery Noyes tracked 1,128 Education transactions between 2018 and 1st Half 2020, of which 205 disclosed financial terms, and calculated the aggregate transaction value to be $28.99 billion. Based on known transaction values, we project the values of 923 undisclosed transactions to be $7.85 billion, totaling $36.84 billion worth of transactions tracked over the past two and a half years.
Transactions from 1st Half 2018 to 1st Half 2020 with enterprise values in the $10-$20 million range had a median revenue multiple of 1.7x, whereas those above $20 million garnered a median revenue multiple of 3.1x.
Disclosed median enterprise value multiples for all segments combined in this report during the last 30 months were 2.3x revenue and 9.8x EBITDA.