Q3 2015 KEY HIGHLIGHTS
- The E-Commerce segment’s largest transaction in Q3 2015 and year-to-date was home shopping channel QVC, Inc.’s acquisition of Zulily, an online retailer that primarily serves millennial moms, for $2.1 billion.
- There were 279 financially sponsored transactions in the 1st 3 Quarters of 2015 with an aggregate value of $25.1 billion, representing 13 percent of the total volume and 23 percent of the total value, respectively.
Q3 2015 KEY TRENDS
- Total transaction volume in Q3 2015 declined by seven percent over Q2 2015, from 713 to 663. However, volume year-to-date increased 15 percent compared to the same timeframe in 2014.
- Total transaction value in Q3 2015 fell by 17 percent over Q2 2015, from $45.5 billion to $37.7 billion. This followed a 75 percent rise in Q1 2015.
MULTIPLES & VALUE TRENDS
- The median revenue multiple from 2014 through the 1st 3 Quarters of 2015 moved slightly, from 2.4x to 2.3x.
- The median EBITDA multiple from 2014 through the 1st 3 Quarters of 2015 decreased by 22 percent, from 13.1x to 10.2x.
TOP TEN DEALS THROUGH Q3 2015
The top ten deals by value have seen four new additions since our half year report, one of which was completed by a financial sponsor. The one private equity backed deal was Leonard Green Capital Partners’ acquisition of Ellucian, which provides higher education software, services and analytics.
These four transactions, with an aggregate value of $10.4 billion, represented 10 percent of transaction value in the 1st 3 Quarters of 2015 and 28 percent of Q3 2015 transaction value.