Q3 2017 KEY HIGHLIGHTS
- The largest transaction in Q3 2017 was KKR’s Internet Brands’ announced acquisition of WebMD Corporation, an online health information provider, for $2.8 billion. Internet Brands also acquired DentalPlans.com, a dental and health savings online marketplace, during the quarter.
- There were 365 financially sponsored transactions in the 1st 3 Quarters of 2017 with an aggregate value of $26.8 billion, representing 17 percent of the total volume and 31 percent of the total value, respectively.
Q3 2017 KEY TRENDS
- Total transaction volume in Q3 2017 declined by nine percent over Q2 2017, from 710 to 644. Volume year-to-date decreased by four percent compared to the same timeframe in 2016.
- Total transaction value in Q3 2017 remained nearly constant over Q2 2017 at $27.9 billion.
MULTIPLES & VALUE TRENDS
- The median revenue multiple from 2016 through the 1st 3 Quarters of 2017 fell by 14 percent, from 2.2x to 1.9x.
- The median EBITDA multiple from 2016 through the 1st 3 Quarters of 2017 moved downward by nine percent, from 11.3x to 10.3x.
TOP TEN DEALS THROUGH Q3 2017
The top ten deals by value have seen five new additions since our half year report, three of which occurred in the E-Content segment: the aforementioned acquisition of WebMD Corporation for $2.8 billion; The Walt Disney Company’s announced acquisition of BAMTech for $1.6 billion; and Red Ventures’ announced acquisition of Bankrate for $1.4 billion.
These five transactions, with an aggregate value of $8 billion, represented ten percent of transaction value in the 1st 3 Quarters of 2017 and 29 percent of Q3 2017 transaction value.