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Jordan, Edmiston: M&A deal value sharply lower in Q1

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New York—The value of M&A transactions in the media, information, marketing, healthcare and technology sectors fell sharply in the first quarter, compared with the year-earlier period, according to data released today by media investment bank Jordan, Edmiston Group. The value of deals announced in the first quarter totaled $7.5 billion, down 38% from the year-earlier period. The number of deals fell from 374 to 353. M&A activity was driven by smaller transactions in this year's first quarter, a trend that is expected to continue. Jordan, Edmiston's third annual “Media Growth Survey,” released in January, indicated that almost 50% more companies in the $10 million-to-$50 million revenue range were planning an acquisition this year compared with last year. The first-quarter results followed a surge in M&A activity in 2012, as sellers tried to complete deals before the end of the year to avoid an increase in the capital gains tax rate. In 2012, the number of transactions hit 1,351, up from 903 in 2011; deal value totaled $75 billion, up from $52 billion. (Jordan, Edmiston had earlier predicted a drop-off in M&A activity in this year's first quarter.) The b-to-b media sector saw eight deals with a total value of $102 million in the first quarter, compared with nine deals with a total value of $63 million in the year-earlier period. In the b-to-b online media and technology sector, there were 21 deals in the first quarter, up from 19; deal value totaled $198 million, down from $201 million.
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