2022 KEY HIGHLIGHTS
Strategic acquisitions represented 77 percent of total volume and 23 percent of total value in 2022, respectively.
Seven of the industry’s top ten largest deals during the year were completed by strategic acquirers.
2022 KEY TRENDS
Total transaction volume in 2022 decreased by five percent over 2021, from 4,359 to 4,127.
As for the industry’s three horizontal markets, Software volume decreased by 16 percent; Online & Mobile volume decreased by 8 percent; and Media & Marketing volume increased by 14 percent.
Total transaction value in 2022 decreased 17 percent over 2021, from $648.31 billion to $535.95 billion.
The median revenue multiple decreased from 4.0x in 2021 to 2.8x in 2022. The median EBITDA multiple decreased from 15.0x in 2021 to 10.9x in 2022.
M&A MARKET OVERVIEW
Berkery Noyes tracked 12,456 Information Industry transactions between 2020 and 2022, of which 2,374 disclosed financial terms, and calculated the aggregate value to be $1,227.18 billion. Based on known transaction values, we project values of 10,082 undisclosed transactions to be $277.48 billion, totaling $1,504.67 trillion worth of transactions tracked over the past three years.
Disclosed median enterprise value multiples for all segments combined in this report during the last 36 months were 3.0x revenue and 12.5x EBITDA.
Out of 12,456 deals tracked by Berkery Noyes between 2020 and 2022, transactions valued at $160 million and above garnered a median enterprise value multiple of 5.6x revenue. In contrast, companies with transaction values between $10 million and $20 million captured a median enterprise value multiple of 2.4x revenue.