1ST HALF 2023 KEY HIGHLIGHTS
The largest deal in 1st Half 2023 was CPP Investment Board and SilverLake’s acquisition of Qualtrics, a subsidiary of SAP SE, an experience management company, for $10.42 billion.
There were 306 financially sponsored transactions with an aggregate value of $22.2 billion, representing 22 percent of the total volume and 34 percent of the total value, respectively.
1ST HALF 2023 KEY TRENDS
Total transaction volume in 1st Half 2023 decreased by 7 percent over 2nd Half 2022 from 1510 in 1st Half 2022 to 1401 in 2nd Half 2023.
In terms of acquirer type, strategic volume declined from 1,178 to 1,097. Private equity volume decreased 7.8 percent, from 332 to 306.
Total transaction value in 1st Half 2023 decreased by 37 percent over 2nd Half 2022 from $103.27 billion in 2nd Half 2022 to $65.39 billion in 1st Half 2023.
The median revenue multiple declined from 2.1x in 2nd Half 2022 to 1.8x in 1st Half 2023. The median EBITDA multiple fell from 10.7x in 2nd Half 2022 to 9.0x in 1st Half 2023.
The only segment to increase in volume in 1st Half 2023 over 2nd Half 2022 was SaaS & Cloud with a 4 percent increase from 580 to 601 transactions.
M&A MARKET OVERVIEW
Berkery Noyes tracked 8,169 Online & Mobile transactions between 2021 and 1st Half 2023, of which 1,538 disclosed financial terms, and calculated the aggregate transaction value to be $623.90 billion. Based on known transaction values, we project values of 6,631 undisclosed transactions to be $163.90 billion totaling $787.80 billion worth of transactions tracked over the past 2 years.
Transactions receiving transaction values greater than $160 million garnered the higher median enterprise value multiple of 6.25 times revenue which is 185 percent greater than companies who received transaction values of $10 to $20 million which captured a median transaction value of 2.20 times revenue.