Q3 2016 KEY HIGHLIGHTS
- The most active market segment in Q3 2016 was K-12 Media and Tech with 22 transactions.
- The combined Professional Training Technology and Services segments, with 26 deals, accounted for one-quarter of aggregate volume in Q3 2016.
- Strategic acquirers represented 72 percent of the industry’s total volume and 52 percent of total value year-to-date.
Q3 2016 KEY TRENDS
- Total transaction volume in the 1st 3 Quarters of 2016 declined by nine percent over the 1st 3 Quarters of 2015, from 323 to 295. However, there was a four percent quarterly uptick, from 99 to 103.
- Total transaction value in the 1st 3 Quarters of 2016 fell by 70 percent over the 1st 3 Quarters of 2015, from $14.4 billion to $4.3 billion. Of note, there were five acquisitions with disclosed values above $500 million in the 1st 3 Quarters of 2015, compared to one such deal in the 1st 3 Quarters of 2016.
MULTIPLES & VALUE TRENDS
- The median revenue multiple stayed about the same on a year-over-year basis at 2.0x. Median transaction value also remained nearly constant during this timeframe at $18 million.
TOP TEN DEALS THROUGH Q3 2016
Berkery Noyes tracked 1,093 Education transactions between 2013 and 2016 on a 1st 3 Quarters basis, of which 233 disclosed financial terms, and calculated the aggregate transaction value to be $28.7 billion.
Based on known transaction values, we project the values of 860 undisclosed transactions to be $6.3 billion, totaling $35 billion worth of transactions tracked over the past 45 months.