Q3 2022 Key Highlights
Four of the top five highest value deals year-to-date were completed by strategic acquirers.
SaaS & Cloud, which was the industry’s most active segment in the 1st 3 Quarters of 2022, accounted for nearly 40 percent of total volume year-to-date.
There were 517 financially sponsored transactions in the 1st 3 Quarters of 2022 with an aggregate value of $99.2 billion, representing 20 percent of the total volume and 35 percent of the total value, respectively.
Q3 2022 Key Trends
Total transaction volume in the 1st 3 Quarters of 2022 declined by five percent over the 1st 3 Quarters of 2021, from 2,661 to 2,523.
Total transaction value in the 1st 3 Quarters of 2022 increased by seven percent over the 1st 3 Quarters of 2021, from $266.1 billion to $283.5 billion.
Multiples & Value Trends
The median revenue multiple on a year-over-year basis fell by 31 percent, from 4.2x to 2.9x.
The median EBITDA multiple on a year-over-year basis decreased by 20 percent, from 14.3x to 11.5x.
Top Ten Deals Through Q3 2022
Five of the top ten deals by value year-to-date occurred in Q2 2022, two of which were backed by financial sponsors: the announced acquisition of Zendesk, a customer service platform, by an investor group led by Hellman & Friedman and Permira, for $10.2 billion; and Brookfield’s acquisition of CDK Global, which offers integrated data and technology solutions for dealers and auto manufacturers, for $8.2 billion.
These five transactions, with an aggregate value of $110.5 billion, represented 39 percent of transaction value in the 1st 3 Quarters of 2022.