Friday, August 26, 2011

CANADA’S VENTURE CAPITAL MARKET IN Q2 2011: PACE OF VC INVESTED SLOWS, FUND-RAISING CONTINUES DECLINE

Commentary

In the second quarter of 2011, Canadian venture capital (VC) investment made no further advances on growth in previous quarters, and instead registered a slight drop in disbursements, in part because of stalled fund-raising activity. This was one of several findings of a statistical report released by CVCA- Canada’s Venture Capital & Private Equity Association and research partner Thomson Reuters.

According to the report, VC invested across Canada totaled $328 million between April and June, down 2% from $335 million invested the year before. Less cash went to more firms, with companies financed with VC totaling 134 in this period, up 11% from Q2 2010.

Due to a more active Q1 2011, Canadian VC deal-making showed moderate growth over the first half of the year. Dollars invested totaled $686 million at the end of June, or 10% more than the $626 million invested during the first half in 2010.

“After a period of steady, if moderate, expansion in VC invested, it is very concerning to see weaker dollar flows at this point”, said Gregory Smith, President of the CVCA and Managing Partner, Brookfield Financial. “Clearly there is demand coming from young, entrepreneurial businesses – a fact that is borne out by year-over-year growth in company financings – but this demand is not being met by an adequate supply of value-added risk capital.” added Mr. Smith.

Mr. Smith observed that VC deal capitalization levels, which are imperative to innovative businesses with the potential for high growth, have not improved, regardless of swings in overall market activity. “To date in 2011, domestic firms have captured only 36% of the dollars going to counterpart firms in the United States, which is even lower than the 38% averaged in 2010,” said Mr. Smith.

Mr. Smith singled out slow rates of VC fund-raising activity in Canada as a primary factor influencing investment trends at present. New commitments to VC funds totaled $132 million between April and June, or 57% below the $308 million committed at the same time last year. Over the first half of 2011, fund-raising was comparably sluggish, with new supply totaling $374 million, down 46%.

“The fund-raising situation continues to undermine deal-making, and impedes our capacity to draw out the natural strengths inherent in Canada’s emerging technology sectors and entrepreneurial managers,” said Mr. Smith. He added: “VC investment, which has historically been the catalyst for knowledge-based economic growth, cannot effectively do this job until we take determined steps to ensure more stable supply.”

“Given the demonstrably large contribution of VC-backed companies to Canadian growth rates, exports, and levels of R&D expenditure, a strong and well-capitalized VC fund management industry is even more important as the global economy enters a new period of uncertainty and potential contraction,” said Mr. Smith.

On a brighter note, exits from Canadian innovative companies appeared to continue at postslowdown levels in Q2 2011, with 9 liquidity events counted – including Cephalon Inc.’s acquisition of Gemin X Pharmaceuticals Inc. in April – bringing the total in the first half of the year to 14. At the same time, portfolio realizations remain skewed to strategic acquisitions, with only one VC-backed IPO reported to date in 2011.

The report found VC market trends in Q2 2011 were experienced differently by Canadian region, with 11% growth in Ontario- and Québec-based disbursements, relative to Q2 2010, but reduced activity in the West. IT sectors continued to be the focus of deal-making, taking 42% of total dollars invested in the second quarter, though VC activity in them was down 7% year over year. On the other hand, clean technology sectors saw a 17% gain in activity over the same period.

CVCA

The CVCA - Canada’s Venture Capital & Private Equity Association, was founded in 1974 and is the association that represents Canada’s venture capital and private equity industry. Its over 1900 members are firms and organizations which manage the majority of Canada’s pools of capital designated to be committed to venture capital and private equity investments. The CVCA fosters professional development, networking, communication, research and education within

Friday, August 12, 2011

Money Tree Report: Venture capitalists invested $7.5 billion in 966 deals in the second quarter of 2011.


Complete report

Venture capitalists invested $7.5 billion in 966 deals in the second quarter of 2011. Quarterly investment activity increased 19 percent in terms of both dollars and the number of deals compared to the first quarter of 2011 when $6.3 billion was invested in 814 deals. The quarterly investment level represents the highest total in a single quarter since the second quarter of 2008. The deal count for the first half of 2011 (1,780 deals) is nearly identical to that seen in the first half of 2010 (1,784 deals) while the $13.8 billion invested in the first half of 2011 represented a 12 percent increase over the $12.3 billion invested in the first half of 2010.

The Life Sciences sector (biotechnology and medical device industries combined) saw an increase in venture capital dollars invested during the second quarter, rising 37 percent in dollars and 12 percent in deal volume from the prior quarter to $2.1 billion going into 206 deals.

Investment in Internet-specific companies surged in the second quarter with $2.3 billion going into 275 companies. This level of investment represents a 72 percent increase in dollars and a 46 percent increase in deals from the first quarter when $1.4 billion went into 189 deals. The second quarter marks the most dollars going into Internet-specific companies in a decade, since the second quarter of 2001. Five of the top 10 deals this quarter, including the top two deals, were classified as Internet-specific investments, which is a discrete classification assigned to a company with a business model that is fundamentally dependent on the Internet, regardless of the company’s primary industry category.

Investments by industry Q2

The Software industry received the highest level of funding for all industries with $1.5 billion invested during the second quarter of 2011. This level of investment represents a 35 percent increase in dollars compared to the $1.1 billion invested in the first quarter. The Software industry also had the most deals completed in Q2 with 254 rounds, which represents a 25 percent increase from the 203 rounds completed in the first quarter.

In terms of dollars invested, the Biotechnology industry returned to second place, rising 46 percent from the prior quarter to $1.2 billion in the second quarter of 2011. The number of deals also rose in the second quarter, increasing 20 percent to 116 from 97 in the first quarter of 2011. The Medical Devices and Equipment industry also experienced an increase, rising 26 percent in Q2 to $841 million, while the number of deals remained relatively flat at 90 deals in Q2. This sector ranked third overall in Q2 in terms of dollars invested.

The Clean Technology sector, which crosses traditional MoneyTree industries and comprises alternative energy, pollution and recycling, power supplies and conservation, saw a 23 percent decrease in dollars to $942 million in Q2 from the first quarter when $1.2 billion was invested. The number of deals completed in the second quarter, however increased 11 percent to 81 deals compared with 73 deals in the first quarter, marking the most active quarter for Clean Technology deals completed in MoneyTree history.

Ten of the 17 MoneyTree sectors experienced double-digit increases in dollars in the second quarter, including IT Services (19 percent increase), Media & Entertainment (27 percent), Consumer Products & Services (248 percent), and Semiconductors (22 percent increase).

Life Sciences Venture Capital Investing Leaps 37% in Q2 2011, According to the MoneyTree Report

Venture capital (VC) funding in the Life Sciences sector, which includes the Biotechnology and Medical Device industries, leapt 37 percent during the second quarter of 2011, according to a new PwC US report, "High-dollar deals." The report includes data from the PricewaterhouseCoopers LLP/National Venture Capital Association MoneyTree™ Report, based on data from Thomson Reuters.

Venture capitalists invested $2.1 billion in 206 Life Sciences deals, delivering the seventh best quarter since the MoneyTree Report began collecting data in 1995. Despite the quarter’s strong performance, dollars invested in Life Sciences declined 3 percent when compared with the same quarter of 2010. Deal volume also decreased year over year, but by a greater margin of 21 percent. Compared with the first quarter of 2011, deal volume looked more positive, showing an increase of 12 percent.

“The rise in venture capital investment going into Life Sciences during the second quarter can be attributed, in part, to an increase in exit activity,” noted Tracy T. Lefteroff, global managing partner of the venture capital practice at PwC. “The exit market for biotech and medical device companies has been more active over the past year, and exit activity allows venture funds to achieve liquidity in their portfolios. This liquidity enables venture funds to return dollars to their limited partners and make additional funds available to support the rest of their portfolios.”

For all sectors, venture capitalists invested $7.5 billion in 966 deals in Q2 2011, a 5 percent increase in dollars and a 3 percent decrease in deals, compared to $7.2 billion going into 998 deals in Q2 2010. The Life Sciences share of total venture capital dollars invested slipped slightly to 28 percent in the second quarter of 2011 from 30 percent in the second quarter of 2010. The average deal size for all industries, although not as high as life sciences, increased for the third consecutive quarter and stood at $7.8 million.

In Q2 2011, Biotechnology investing declined by 9 percent in dollars and dropped 24 percent in deals year over year with $1.2 billion going into 116 deals. Medical device investments increased 9 percent in dollars and declined 17 percent in deals in Q2 2011, compared to the same quarter a year ago. With $841 million going into 90 deals, this was the highest level of funding for the Medical Device industry since the third quarter of 2008 and the seventh highest quarterly funding during the last 16 years.

First-Time Financing


During the second quarter of 2011, 44 Life Sciences companies received venture capital funding for the first time, capturing $283 million. This represents a decline of 27 percent in the number of companies and a small drop in dollars invested, compared to the second quarter of 2010. First-time deals in the Life Sciences sector averaged $6.4 million in the second quarter of 2011, a 36 percent jump year over year and significantly higher than the average first-time deal size of $4.8 million for all industries during the quarter.

“Average first-time deal size increased by 36 percent year over year, in part, because of the longer time frames that venture capitalists believe they will need for their portfolio companies to achieve significant milestones. These milestones could lead to a window of opportunity for additional financing or an exit,” added Lefteroff.

Funding by Subsegment


Two of the seven Biotechnology subsegments exhibited growth in the second quarter of 2011 compared to the second quarter of 2010. Dollars invested in the Biotech Research and Biotech Equipment subsegments rose 216 percent and 197 percent, respectively. The Human Biotechnology subsegment captured the largest share in the second quarter with $819 million going into 70 deals, a 2 percent decrease in dollars and a 21 percent decrease in deals from Q2 of 2010.

Funding for two of the three Medical Device subsegments decreased in Q2 2011, compared with the same quarter of 2010 - Medical/Health Products fell 57 percent and Medical Diagnostics dropped 7 percent in dollars. However, dollars invested in the Medical Therapeutics category increased by 33 percent during the second quarter of 2011, compared to the same time a year ago. This subsegment also accounted for nearly two-thirds of the deals and more than three-fourths of the dollars during the second quarter of 2011 with $655 million going into 59 deals.

Investments by Region

The top five metropolitan regions receiving Life Sciences venture capital funding during Q2 2011 were San Francisco Bay ($552 million), Boston ($441 million), Washington Metroplex ($210 million), San Diego Metro ($186 million), and Orange County ($157 million). Investments in Biotechnology deals accounted for 54 percent of the dollars invested in the top five regions in Q2 2011.

Except for San Francisco Bay, funding for the top regions increased on a year-over-year basis. During the second quarter of 2011, Washington Metroplex received $163 million more in venture capital funding than the same period of the previous year. This region also recorded the highest year-over-year increase among all the metropolitan regions at 344 percent.

Friday, August 5, 2011

Trends Report for the Software Industry

Berkery Noyes has released its Half Year Mergers and Acquisitions Trends Report for the Software Industry.

1st Half 2011 Key Highlights


The largest transaction in 1st Half 2011 was Microsoft Corporation’s announced acquisition of Skype Technologies SA, from an investor group lead by Silver Lake Partners, for $9.08 billion.

Google, Inc. was the most active Software Industry acquirer by volume, with nine acquisitions: SageTV, Zynamics, AdMeld Inc., PostRank Inc., Sparkbuy Inc., TalkBin, PushLife Inc., Green Parrot Pictures and SayNow.

There were 84 financially sponsored transactions in 1st Half 2011, with an aggregate value of $8.1 billion, representing 13 percent of the total volume and 15 percent of the total value, respectively.

1st Half 2011 Key Trends

Total transaction volume remained largely unchanged in1st Half 2011from 2nd Half 2010, with 651 transactions in 2nd Half 2010 and 655 in 1st Half 2011.

Total transaction value in 1st Half 2011 decreased by three percent over 2nd Half 2010 from $41.3 billion in 2nd Half 2010 to $40.1 billion in 1st Half 2011.

Median multiples increased in 1st Half 2011 from 2nd Half 2010. Median revenue multiples rose 16 percent from 1.8 to 2.1, and median EBITDA multiples rose 13 percent from 12.2 to 13.8, which represents the fourth consecutive increase in median EBITDA multiples. Median transaction value has made a similar increase.

M&A Market Overview


Berkery Noyes tracked 2727 transactions between 2009 and 1st Half 2011, of which 929 disclosed financial terms, and calculated the aggregate transaction value to be $120.7 billion. Based on known transaction values, BN projects values of 1796 undisclosed transactions to be $28.2 billion, totaling $148.8 billion worth of transactions tracked over the past two and a half years.

Disclosed median enterprise value multiples between 2009 and 1st Half 2011 for all segments combined in this report were 11.8 times EBITDA and 1.79 times revenue.

The most active market segment that Berkery Noyes tracked between 2009 and 1st Half 2011, in both value and volume, was Niche Software with 1310 transactions with an aggregate value of $54.9 billion.

Thursday, August 4, 2011

Half Year Mergers and Acquisitions Trends Report for the Media & Marketing Industry

Berkery Noyes has released its Half Year Mergers and Acquisitions Trends Report for the Media & Marketing Industry.

1st Half 2011 Key Highlights

The largest transaction in 1st Half 2011 was West Australian Newspapers Limited’s acquisition of Seven Media Group from an investor group including Kolhberg Kravis Roberts, for $4.1 billion.

Publicis Groupe SA was the most active acquirer in 1st Half 2011, with 12 purchases: Genedigi Group, Rosetta Marketing Group, LLC, Dreams Communication, Tailor Made, GP7, Watermelon Healthcare Communications, Airlock, Kitcatt Nohr Alexander Shaw Ltd, Interactive Communications Ltd, Holler Digital Ltd., Chemistry Communications Group plc and Klapp Media AS.

There were 75 financially sponsored transactions with a projected aggregate value of $7.87 billion, representing 12 percent of the total volume and 25 percent of the total value, respectively.

1st Half 2011 Key Trends

Total transaction volume in 1st Half 2011 increased by 14 percent over 2nd Half 2010, from 563 in 2nd Half 2010 to 644 this year.

Total transaction value in 1st Half 2011 increased by 67 percent over 2nd Half 2010, from $17.3 billion in 2nd Half 2010 to $28.9 billion this year.

The segment with the largest increase in volume in 1st Half 2011 over 2nd Half 2010 was Internet Media with a 37 percent increase, from 182 to 250 transactions.

M&A Market Overview


Berkery Noyes tracked 2518 transactions between 2009 and 1st Half 2011, of which 640 disclosed financial terms, and calculated the aggregate transaction value to be $95.8 billion. Based on known transaction values, BN projects the value of the 1878 undisclosed transactions to be $20.3 billion, totalling $116.1 billion worth of transactions tracked over the past two and a half years.

Half Year Mergers and Acquisitions Trends Report for the Online & Mobile Industry

Berkery Noyes has released its Half Year Mergers and Acquisitions Trends Report for the Online & Mobile Industry.

2011 - Mid Year - Trends Report - Online

1st Half 2011 Key Highlights


The largest transaction in 1st Half 2011 was Microsoft Corporation’s announced acquisition of Skype Technologies SA, from an investor group lead by Silver Lake Partners, for $9.08 billion.

Google, Inc. was the most active acquirer in 1st Half 2011, with 11 purchases: SageTV, AdMeld Inc., PostRank Inc., Sparkbuy Inc., TalkBin, PushLife Inc., BeatThatQuote.com Ltd., Next New Networks, Inc., FFlick, SayNow and eBook Technologies Inc.

There were 82 financially sponsored transactions in 1st Half 2011, with an aggregate value of $3.58 billion,representing 11 percent of the total volume and 11 percent of the total value,respectively.

1st Half 2011 Key Trends

Total transaction volume in 1st Half 2011 increased by 23 percent over 2nd Half 2010 from 643 in 2nd Half 2010 to 788 in 1st Half 2011.

Total transaction value in 1st Half 2011 increased by 52 percent over 2nd Half 2010 from $28.46 billion in 2nd Half 2010 to $43.31 billion in 1st Half 2011.

The segment with the largest increase in volume in 1st Half 2011 over 2nd Half 2010 was Communications with a 44 percent increase from 39 transactions in 2nd Half 2010 to 56 transactions in 1st Half 2011.

M&A Market Overview

Berkery Noyes tracked 2750 transactions between 2009 and 1st Half 2011, of which 797 disclosed financial terms, and calculated the aggregate transaction value to be $84.8 billion. Based on known transaction values, BN projects the value of the 1953 undisclosed transactions to be $28.2 billion, totaling $113 billion worth of transactions tracked over the past two and a half years.

The most active acquirer over the past two and a half years was Google, Inc., which made 39 transactions.

Disclosed median enterprise value multiples between 2009 and 1st Half 2011 for all segments combined in this report were 11.44 times EBITDA and 1.80 times revenue.

Wednesday, August 3, 2011

Half Year Mergers and Acquisitions Trends Report for the Financial Technology and Information Industry

Berkery Noyes has released its Half Year Mergers and Acquisitions Trends Report for the Financial Technology and Information Industry.

1st Half 2011 Key Highlights


The largest transaction in 1st Half 2011 was Deutsche Börse Group’s announced merger with NYSE Euronext for $12.4 billion.

Fiserv, Inc. was the most active acquirer in 1st Half 2011, with four purchases: CashEdge, Inc., Credit Union On-Line, Inc., Mobile Commerce Ltd, and Maverick Network Solutions.

1st Half 2011 Key Trends


Total transaction volume in 1st Half 2011 remained largely unchanged from 2nd Half 2010, losing only two transactions, from 114 in 2nd Half 2010 to 112 this year.
Total transaction value in 1st Half 2011 increased by 179 percent over 2nd Half 2010, from $7.0 billion in 2nd Half 2010 to $19.5 billion this year. This large increase can be attributed to the aforementioned Deutsche Borse and NYSE Euronext merger.

M&A Market Overview


Berkery Noyes tracked 541 transactions between 2009 and 1st Half 2011, of which 215 disclosed financial terms, and calculated the aggregate transaction value to be $44.8 billion. Based on known transaction values, BN projects the value of the 326 undisclosed transactions to be $4 billion, totalling $48.8 billion worth of transactions tracked over the past two and a half years.

Morningstar, Inc. was the most active acquirer in the two and a half years covered in this report, making nine transactions: The Annuity Intelligence Report from Advanced Sales & Marketing Corporation, Seeds Finance SA, Morningstar Danmark A/S, Old Broad Street Research, Aegis Equities Research, Realpoint, LLC, Logical Information Machines, Inc., Andex Associates, Inc. and Computerized Portfolio Management Services, Inc.

Out of 541 transactions tracked by Berkery Noyes between 2009 and First Half 2011 we found that the 80 financially sponsored transactions accounted for 15 percent of the total transactions, yet they totalled $11.8 billion, representing 24 percent of total aggregate transaction value over the past two and a half years.

Half Year Mergers and Acquisitions Trends Report for the Pharma and Healthcare Information and Technology Industry

Berkery Noyes, the leading independent investment bank specializing in the information content and technology industries, today released its Half Year Mergers and Acquisitions Trends Report for the Pharma and Healthcare Information and Technology Industry.

1st Half 2011 Key Highlights

The largest transaction in 1st Half 2011 was Computer Sciences Corporation’s announced acquisition of iSoft Group Limited for $443 million.

The segment with the largest disclosed median enterprise value multiples for 1st Half 2011 was Pharma Information with 4.3 times revenue.

Reed Elsevier and LLR Partners both announced three transactions this half year, tying as the most acquisitive companies in the Pharma and Healthcare space.

1st Half 2011 Key Trends

Total transaction volume in 1st Half 2011 increased by 6 percent over 2nd Half 2010, from 136 in 2nd Half 2010 to 144 in 1st Half 2011.

Total transaction value in 1st Half 2011 decreased by 28 percent over 2nd Half 2010, from $4.8 billion in 2nd Half 2010 to $3.4 billion this year.

M&A Market Overview


Berkery Noyes tracked 590 transactions between 2009 and 1st Half 2011, of which 192 disclosed financial terms, and calculated the aggregate transaction value to be $18.8 billion. Based on known transaction values, BN projects the value of the 398 undisclosed transactions to be $2.1 billion, totaling $21 billion worth of transactions tracked over the past two and a half years.

UnitedHealth Group was the most active acquirer in the two and a half years covered in this report, making nine transactions: A-Life Medical, Inc., Axolotl Corporation, Executive Health Resources, Inc., Picis, Inc., ChinaGate, QualityMetric, Inc., Scriptswitch Limited, CareMedic Systems, Inc. and AIM Healthcare Services, Inc.

Out of 582 transactions tracked by Berkery Noyes between 2009 and First Half 2011 BN found that the 141 financially sponsored transactions accounted for 24 percent of the total transactions, yet they totalled $8.9 billion, representing 41 percent of total aggregate transaction value over the past two and a half years.

Tuesday, August 2, 2011

Half Year Mergers and Acquisitions Trends Report for the Education Industry.

Berkery Noyes, the leading independent investment bank specializing in the information content and technology industries, today released its Half Year Mergers and Acquisitions Trends Report for the Education Industry.


1st Half 2011 Key Highlights


The largest transaction in 1st Half 2011 was Plateau Systems, Ltd.’s acquisition by SuccessFactors, Inc. for $290 million.

Pearson plc was the most active acquirer in the first half, announcing four acquisitions: Education Development International plc, SchoolNet, Inc., Smarthinking, Inc. and TutorVista.

There were 17 financially sponsored transactions in 1st Half 2011, with an aggregate value of $174 million, representing 24 percent of the total volume and 48 percent of the total value, respectively.

1st Half 2011 Key Trends

Total transaction volume in 1st Half 2011 decreased by 7 percent over 2nd Half 2010, from 96 in 2nd Half 2010 to 89 in 1st Half 2011.

Total transaction value in 1st Half 2011 decreased by 57 percent over 2nd Half 2010, from $3.3 billion in 2nd Half 2010 to $1.4 billion this year.

M&A Market Overview


Berkery Noyes tracked 468 transactions between 2009 and 1st Half 2011, of which 144 disclosed financial terms, and calculated the aggregate transaction value to be $10.4 billion. Based on known transaction values, we project the value of the 324 undisclosed transactions to be $791 million, totaling $11.2 billion worth of transactions tracked over the past two and a half years.

Pearson plc, was not only the most active buyer this half year, but also the most active acquirer in the two and a half years covered in this report, making 17 transactions: Education Development International plc, SchoolNet, Inc., Smarthinking, Inc., TutorVista, CTI Education Group, The Administrative Assistants Ltd., America’s Choice, Wall Street Institute, Inc., Learning Systems Business from Sistema Educacional Brasileiro, Cogmed, The Learning Edge North America, Melorio plc, Assessment Training Institute, A+Rise, WSI International, Inc., Wall Street English and Intellipro, Inc.

Disclosed median enterprise value multiples for the time covered in this report were 1.5 times revenue and 10.2 times EBITDA.

Half Year Mergers and Acquisitions Trends Report for Private Equity in the Information Industry.

Berkery Noyes, the leading independent investment bank specializing in the information, content and technology industries, today released its Half Year Mergers and Acquisitions Trends Report for Private Equity in the Information Industry.

1st Half 2011 Key Highlights


The largest transaction in 1st Half 2011 was Thomas H. Lee Partners’ acquisition of Acosta, Inc. a subsidiary of AEA Investors LP, for $2 billion.

Thomas H. Lee Partners was also the most active acquirer in 1st Half 2011, with 10 purchases: FleetEyes, LLC., Contact One, Inc., Versult Group, Inc., Sword Insurance, Smoothstone IP Communications, Inc., PCLender. com, Inc., Unisfair, Inc., Twenty First Century Communications, Inc., i3 Clinical Development Businesses from Ingenix, Inc. and the aforementioned Acosta, Inc.

1st Half 2011 Key Trends

Total transaction volume in 1st Half 2011 increased by 11 percent over 2nd Half 2010, from 154 in 2nd Half 2010 to 171 this year.

Total transaction value in 1st Half 2011 increased by 31 percent over 2nd Half 2010, from $8.4 billion in 2nd Half 2010 to $11 billion this year.

M&A Market Overview

Berkery Noyes tracked 736 transactions between 2009 and 1st Half 2011, of which 225 disclosed financial terms, and calculated the aggregate transaction value to be $45.5 billion. Based on known transaction values, we project the value of the 511 undisclosed transactions to be $4.3 billion, totalling $49.8 billion worth of transactions tracked over the past two and a half years.

The largest transaction tracked by Berkery Noyes between 2009 and 1st Half 2011 was the acquisition of IMS Health Incorporated by TPG Capital and CPP Investment Board for $5 billion, which was announced in November of 2009.

Of all the Private Equity transactions from 2009 to 1st Half 2011 within the Information Industry, transactions valued greater than $160 million garnered a median enterprise value multiple of 2.42 times revenue, which is 87 percent greater than companies who received transaction values of $10 to $20 million, as they captured a median transaction value of 1.30 times revenue.