1ST HALF 2016 KEY HIGHLIGHTS
- The largest deal in 1st Half 2016 was Microsoft Corporation’s announced acquisition of LinkedIn, a business social networking site, for $25.93 billion. This was the highest value transaction ever completed by Microsoft.
- There were 204 financially sponsored transactions with an aggregate value of $11.29 billion, representing 14 percent of the total volume and 12 percent of the total value, respectively.
1ST HALF 2016 KEY TRENDS
- Total transaction volume in 1st Half 2016 increased by nine percent over 2nd Half 2015, from 1,346 to 1,464.
- The number of deals in the mobile application subsector rose by 18 percent, from 188 to 221 transactions.
- Total transaction value in 1st Half 2016 gained 12 percent over 2nd Half 2015, from $85.88 billion to $96.14 billion.
- The median revenue multiple experienced an uptick from 2.1x in 2nd Half 2015 to 2.3x in 1st Half 2016. The median EBITDA multiple remained nearly constant during this timeframe at 11.7x.
- Transactions in 1st Half 2016 with enterprise values above $160 million received a median revenue multiple of 4.9x, whereas those in the $10-$20 million range had a median revenue multiple of 1.3x.
- The segment with the largest increase in volume in 1st Half 2016 over 2nd Half 2015 was E-Commerce with a 16 percent rise, from 319 to 369 transactions.
M&A Market Overview
Berkery Noyes tracked 6,795 Online & Mobile transactions between 2014 and 1st Half 2016, of which 1,442 disclosed financial terms, and calculated the aggregate transaction value to be $281.94 billion. Based on known transaction values, we project values of 5,353 undisclosed transactions to be $102.47 billion, totaling $384.41 billion worth of transactions tracked over the past two and a half years.
Disclosed median enterprise value multiples for all segments combined in this report during the last 30 months were 2.4x revenue and 11.6x EBITDA.