Q3 2012 KEY HIGHLIGHTS
- The most active acquirer through Q3 2012 was Pearson plc with four transactions, two of which occurred during Q3 2012: PT Efficient English Services and Psychological Software Solutions, Inc.
- The largest transaction in Q3 2012 was Levine Leichtman Capital Partners Inc.’s acquisition of MPW, a portfolio company of Apollo Group, Inc., for $85 million.
Q3 2012 KEY TRENDS
- Total transaction volume in Q3 2012 increased by two percent over Q2 2012, from 58 to 59.
- Total transaction value in Q3 2012 decreased by 39 percent over Q2 2012, from $740.0 million to $454.8 million.
MULTIPLES & VALUE TRENDS
- The median revenue multiple from 2011 through the 1st 3 Quarters of 2012 fell by 13 percent, from 1.6x to 1.4x.
- The median EBITDA multiple from 2011 through the 1st 3 Quarters of 2012 increased by 13 percent, from 12.0x to 13.5x.
- Professional Training Technology from 2011 through the 1st 3 Quarters of 2012 had a median revenue multiple of 2.2x.
TOP TEN DEALS THROUGH Q3 2012
The top ten deals by value have seen two new additions since our half year report, both of which were completed by private equity firms: Levine Leichtman Capital Partners Inc.’s acquisition of MPW and Sovereign Capital Partners LLP’s acquisition of three sixth form colleges in Central London.
These two transactions, with an aggregate value of $134 million, represented six percent of transaction value in the 1st 3 Quarters of 2012 and 29 percent of Q3 2012 transaction value.