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Berkery Noyes Releases Third Quarter 2011 M&A Update For The Media & Marketing Industry

Wednesday, October 05, 2011

Berkery Noyes, the leading independent investment bank specializing in the information content and technology industries, today released its Third Quarter 2011 Mergers and Acquisitions Update for the Media & Marketing Services Industry.

The report analyzes 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." 

Berkery Noyes specializes in structuring debt and equity transactions in the $25 million to $500 million range, a market that is enjoying a surge in activity. Unique among investment banking firms, Berkery Noyes combines independent strategic research and industry intelligence with senior information technology banking expertise. Long having been an innovator in database and research technology in M&A, Berkery Noyes has committed itself to providing more expansive and more current information. The firm’s research teams publish acquisition activity in the respective sectors they follow on MandAsoft.com.

A copy of the THIRD QUARTER 2011 MEDIA & MARKETING SERVICES INDUSTRY M&A UPDATE is available at the Berkery Noyes website.