Q3 2018 Key Highlights

  • The most active market segment in Q3 2018 was K-12 Media and Tech with 28 transactions, which slightly surpassed the 25 deals in the Professional Training Services segment.
  • The combined Professional Training Technology and Services segments, with 36 deals, accounted for one-third of aggregate volume in Q3 2018.
  • Strategic acquirers represented 67 percent of the total volume and 72 percent of total value year-to-date.

Q3 2018 Key Trends

  • Total transaction volume in the 1st 3 Quarters of 2018 improved by ten percent over the 1st 3 Quarters of 2017, from 298 to 328.
  • After more than tripling in the 1st 3 Quarters of 2017, total transaction value fell 34 percent in the 1st 3 Quarters of 2018, from $13.1 billion to $8.7 billion.

Multiples & Value Trends

  • The median revenue multiple on a year-over-year basis declined from 2.3x to 1.8x.
  • The median EBITDA multiple on a year-over-year basis shifted from 11.0x to 10.5x.

Top Ten Deals Through Q3 2018

  • The top ten deals by value have seen three new additions since our half year report, two of which were completed by strategic acquirers: Intertek Group’s acquisition of Alchemy Systems, a provider of food and workplace safety training for production workers, for $480 million; and GrubHub’s announced acquisition of Tapingo, a platform for campus food ordering, for $150 million.
  • These three transactions, with an aggregate value of $770 million, represented nine percent of transaction value in the 1st 3 Quarters of 2018 and 29 percent of Q3 2018 transaction value.