May 8, 2013 M&A OPPORTUNITIES IN THE GRC MARKET
Peter Ognibene, Managing Director at Berkery Noyes, has written a white paper on M&A trends in the governance, risk, and compliance (GRC) market. GRC M&A volume improved 17 percent from the beginning of 2011 through the end of 2012. This was mentioned in our previous blog post.
82 percent of GRC transactions in 2012 were completed by strategic acquirers. Deal value increased 63 percent during the last twelve months, totaling approximately $6 billion for the year. This was due in part to Goldman Sachs Capital Partners and Advent International Corporation’s acquisition of TransUnion LLC, for $3.20 Billion.
Median revenue and EBITDA multiples have also been on the rise. During the last two years, the median revenue multiple increased from 2.7x to 3.2x, while the median EBITDA multiple improved from 16.0x to 17.5x.
The white paper also gives additional perspective on opportunities for future consolidation. Some of the factors driving demand in the GRC market at the moment include:
- Creating a consistent process for risk assessment;
- Increasing governance metrics;
- Streamlining the decision making process;
- Implementing services through web2.0 and cloud computing; and
- Providing a broader range of information