Fusion Corporate Partners

Berkery Noyes has released its Third Quarter 2011 Mergers and Acquisitions Update for the Media & Marketing Services Industry.

The report analyses merger and acquisition activity in the sector across the three-month period and compares it with similar activity for the six previous quarters.

Overall, the report showed third quarter transaction volume in the Media & Marketing Services Industry increased 14 percent over the previous period, a partial recovery from the second quarter’s 24 percent decline. Transaction value, however, fell 23 percent in the third quarter, sliding from $13.5 billion to $10.4 billion.

Enterprise value multiples have been rising on a yearly basis according to Berkery Noyes research. Third quarter transactions in the Media & Marketing space commanded a median EBITDA multiple of 14.5, a 58 percent increase over the previous quarter, and a revenue multiple of 2.2, which continues to be the highest revenue multiple in the last seven quarters.

Publicis Groupe SA announced the most acquisitions in the Media & Marketing sector, with a total of 17 transactions year-to-date according to the report. The firm’s most recent purchases include Schwartz Communications, Inc., one of the largest independent public relations agencies in the U.S., and DPZ, one of Brazil’s leading advertising agencies.

“Interestingly, DPZ was Publicis Groupe’s third acquisition this year in Brazil,” said Berkery Noyes Managing Director Evan Klein. “As one of the top ten ad markets in the world, I have to think Brazil will continue to garner interest from advertising agencies in the near term.”

Third Quarter Key Highlights

• The most active acquirer through Q3 2011 was Publicis Groupe SA with 17 acquisitions, including the acquisitions of Schwartz Communications, Inc., and DPZ during Q3 2011. Publicis Groupe SA also became majority stakeholder in Big Fuel Communications, LLC, and Spillmann/Felser/ Leo Burnett.
• The largest Q3 2011 transaction was Bloomberg L.P.’s acquisition of BNA, Inc. for $963 million.
• There were 124 financially sponsored transactions in the 1st 3 Quarters of 2011, with an aggregate value of $8.74 billion, representing 12 percent of the total volume and 24 percent of the total value, respectively.

A copy of the Third Quarter 2011 Media & Marketing Services Industry M&A Update is available here.

USA, New York, NY

Other Research Reports:

• Quarterly analysis of UK-headquartered private equity control deals in the £10 million to £100 million segment Posted on October 5, 2011
• Half Year Mergers and Acquisitions Trends Report for Private Equity in the Information Industry Posted on August 1, 2011
• Half Year M&A Trends Report for the Financial Technology and Information Industry Posted on July 19, 2011
• Berkery Noyes releases its Half Year M&A Trends Report for the Online & Mobile Industry Posted on July 18, 2011
• Survey of Private Equity fund managers indicates improved optimism – Rothstein Kass’s Private Equity in 2011 report Posted on May 30, 2011
• Internet Advertising Revenues Hit $7.3 Billion in Q1 ’11 Highest First-Quarter Revenue Level on Record According to IAB and PwC Posted on May 30, 2011
• VC Funding in the solar sector off to a Strong Start With Q1 Coming in at $658 Million From Mercom Capital Group – April 12, 2011
• UK Buyout market registers strongest quarter in two years From Lyceum Capital and Cass Business School’s UK Growth Buyout Dashboard – April 8, 2011
• JEGI releases its Media and Information M&A report for Q1 2011 – From Jordan Edmiston Group’s Media and Information M&A report – April 1, 2011
• Investments in green companies and technologies globally now total more than $2 trillion – From Ethical Markets Media‘S The Green Transition Scoreboard – February 22, 2011
• Market Research Report – 2010 Private Equity in the Information Industry Merger & Acquisition Trends – Valuation Metrics up 53% from 2009 – From Berkery Noyes Private Equity in the Information Industry M&A Trends Report – February 4, 2011
• US entertainment and media M&A activity has outpaced the overall US deal market in 2010 – From PwC US – January 31, 2011
• US Financial Technology & Information Industry M&A trends report shows deal value has grown by 27% since 2009 – From Berkery Noyes  2010 Financial Technology & Information M&A Trends Report – January 19, 2011
• Research shows smaller buyouts bounce back in 2010 – From Lyceum Capital and Cass Business School’s UK Growth Buyout Dashboard – January 11, 2011
• US information industry M&A report shows deal value and volume Up 36% – From Berkery Noyes 2010 Information Market M&A Trends Report – January 7, 2011
• AdMedia Partners survey forecasts an increase in traditional media and digital media M&A and improved multiples – The AdMedia Partners annual survey of senior executives – December 30, 2010