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Full Year 2013 Finance Industry Trends
2013 Key Highlights
- Six of the industry’s top ten highest value deals during 2013 occurred in the Banking segment.
- The Insurance segment’s two largest deals were both completed by private equity firms. This consisted of Hellman & Friedman’s acquisition of Applied Systems for $1.8 billion and Kohlberg Kravis Roberts & Co.’s acquisition of Mitchell International for $1 billion.
- There were 62 financially sponsored transactions with an aggregate value of $12.01 billion, representing 18 percent of the total volume and 40 percent of the total value, respectively.
2013 Key Trends
- Total transaction volume in 2013 increased by ten percent over 2012, from 309 to 341.
- Total transaction value in 2013 decreased by eight percent over 2012, from $32.49 billion to $30.03 billion.
- The median revenue multiple declined from 2.9x in 2012 to 2.2x in 2013. The median EBITDA multiple remained nearly constant at 11.7x.
- The segment with the largest increase in volume in 2013 over 2012 was Capital Markets with a 19 percent increase, from 99 to 118 transactions.
M&A Market Overview
Berkery Noyes tracked 936 Financial Technology and Information transactions between 2011 and 2013, of which 314 disclosed financial terms, and calculated the aggregate value to be $67.31 billion. Based on known transaction values, we project values of 622 undisclosed transactions to be $16.13 billion, totaling $83.44 billion worth of transactions tracked over the past three years.
Disclosed median enterprise value multiples for all segments combined in this report during the last 36 months were 2.6x revenue and 11.5x EBITDA.
The largest deal tracked by Berkery Noyes between 2011 and 2013 was IntercontinentalExchange’s acquisition of NYSE Euronext for $10.18 billion in 2012.