There were more mergers and acquisitions in media and marketing this year for a great total value, marking the sector's third consecutive year of M&A growth, according to a new report from investment bank Jordan Edmiston Group.
The number of deals jumped to 1,351 from 903 last year, while the total value of deals increased more modestly, to $74.7 billion from $52.2 million, as the value per deal dropped to $55.2 million from $57.8 million.
Advances in marketing technology have produced numerous viable new companies, and potential acquirers have money to burn, according to Tolman Geffs, co-president at Jordan Edmiston. "Innovation, especially in media marketing and services, continues at an amazing pace," Mr. Geffs said. "You wind up with a great number breaking new ground in more efficient digital market and commerce services. On the demand side, both corporate and financial acquirers are sitting on records amounts of cash."
The threat of higher taxes in 2013 was another catalyst for getting deals done now, Mr. Geffs said, noting that his firm closed five deals just in the week before Christmas.