The latest issue of our Marketing and Advertising 4Q 2016 Market Update, highlighting trends in M&A, financing, IPOs and capital markets for private and public companies in marketing and advertising, is now available.
- Capital Markets – Marketing Technology companies have slightly trailed the NASDAQ and S&P 500 but outperformed the MSCI Europe Index. They have continued to outpace the Advertising Technology companies, which have sharply trailed the S&P 500, NASDAQ, and MSCI Europe indexes
- Trading Multiples – The public markets continue to discern between the business models of Marketing Technology companies and Advertising Technology companies. Marketing Technology companies are trading at a median LTM revenue multiple of 2.5x, while Advertising Technology companies are trading at a median LTM revenue multiple of 0.5x
- M&A Activity – M&A activity decreased slightly in 4Q 2016, with 30 deals compared to 36 deals in 3Q 2016, with aggregate transaction value increasing. Notable recent transactions include Salesforce’s acquisition of Krux ($680M), Adobe’s acquisition of TubeMogul ($540M), and SintecMedia’s acquisition of Operative Media ($190M). For the full year 2016, M&A activity dropped to a total of 135 deals compared to 190 in 2015, while aggregate transaction for the full year 2016 rose to $7.7B from $4.1B in 2015
- Investment Activity – Investment volume and aggregate value decreased in 4Q 2016 with 83 investments and $300M in value, from 90 investments and $458M in value in 3Q 2016. Notable recent investments include automotiveMastermind ($45M), ActiveCampaign ($20M), and ObservePoint ($19M). For the full year 2016, investment volume rose to 330 investments compared to 254 investments in 2015, while investment value dropped to $1.9B from $2.4B in 2015