1ST HALF 2013 KEY HIGHLIGHTS
- The largest transaction in 1st Half 2013 was Fidelity National Financial, Inc.’s announced acquisition of Lender Processing Services, Inc. for $3.83 billion.
- The most active acquirer in 1st Half 2013 was TA Associates with four industry transactions: MergerID, PE-Nexus, Financial Software Systems, and IT2 Treasury Solutions Limited.
1ST HALF 2013 KEY TRENDS
- Total transaction volume in 1st Half 2013 decreased by eight percent over 2nd Half 2012, from 167 to 154.
- Total transaction value in 1st Half 2013 dropped by 42 percent over 2nd Half 2012, from $18.99 billion to $10.95 billion.
- The median revenue multiple declined from 3.0x in 2nd Half 2012 to 2.1x in 1st Half 2013. The median EBITDA multiple fell from 11.0x in 2nd Half 2012 to 9.8x in 1st Half 2013.
- The segment with the largest increase in volume in 1st Half 2013 over 2nd Half 2012 was Insurance with a 42 percent increase, from 19 to 27 transactions.
M&A Market Overview
Berkery Noyes tracked 749 transactions between 2011 and 1st Half 2013, of which 258 disclosed financial terms, and calculated the aggregate transaction value to be $53.72 billion. Based on known transaction values, we project values of 491 undisclosed transactions to be $9.02 billion, totaling $62.73 billion worth of transactions tracked over the past two and a half years.
Out of 749 transactions tracked by Berkery Noyes during the last 30 months, deals valued at $20 million and above garnered a median enterprise value multiple of 3.0x revenue. In contrast, companies with transaction values between $10 to $20 million captured a median enterprise value multiple of 1.7x revenue.
Based on volume, the most active segment between 2011 and 1st Half 2013 was Capital Markets with 258 transactions. Capital Markets was the industry’s largest segment during four of the previous five half year periods, except for 2nd Half 2012 when it was surpassed by Payments.