Saturday, February 1, 2014
Education Industry Merger & Acquisition Trends For Full Year 2013
M&A MARKET OVERVIEW
Berkery Noyes tracked 849 Education transactions between 2011
and 2013, of which 255 disclosed fi nancial terms, and calculated
the aggregate value to be $21.77 billion. Based on known
transaction values, we project values of 594 undisclosed
transactions to be $5.86 billion, totaling $27.63 billion worth of
transactions tracked over the past three years.
Disclosed median enterprise value multiples for all segments
combined in this report during the last 36 months were 1.6x
revenue and 11.2x EBITDA.
Based on volume, the most active market segment that Berkery
Noyes tracked between 2011 and 2013 was K-12 Media and Tech
with 158 transactions.
2013 KEY HIGHLIGHTS
• The most active acquirer in 2013 was Pearson plc with six
transactions. The largest of these deals was Pearson plc’s
acquisition of Grupo Multi Holding, an English language training
company headquartered in Brazil, for $829 million.
• Nine of the top ten highest value transactions in 2013 were
based outside of the United States.
• There were 65 financially sponsored transactions with an
aggregate value of $5.51 billion, representing 22 percent of
the total volume and 54 percent of the total value, respectively.
2013 KEY TRENDS
• Total transaction volume in 2013 increased by eight percent
over 2012, from 274 to 295.
• Total transaction value in 2013 rose by 27 percent over 2012,
from $8.04 billion to $10.20 billion.
• The median revenue multiple remained constant at 1.5x. The
median EBITDA multiple declined from 13.5x in 2012 to 11.0x
in 2013, which marked a return to the industry’s 2011 EBITDA
• The segment with the largest increase in volume in 2013 over
2012 was Professional Training Technology with a 19 percent
increase, from 31 to 37 transactions.
More information here