Marketing M&A deal activity increased 22% year over year, marking one of the highest volume quarters on record, according to new data from mid-market investment bank Berkery Noyes.
On a quarterly basis, media and marketing transaction volume increased by 3% from 423 to 434 deals; average deal size also climbed, increasing from $25.1 billion to $25.8 billion in the quarter.
“Although aggregate value was consistent over the past quarter, it more than tripled compared to Q1 2013,” said Evan Klein, managing director of Berkery Noyes’ media, marketing services and technology practice. “This is a positive sign that media/marketing deal activity should continue to remain robust.”
The current debt-to-equity ratio in the marketplace today is also conducive to M&A, the report said.
Berkery Noyes breaks down media and marketing transaction analysis by market segments that include marketing, Internet media, consumer publishing, entertainment and content, B2B publishing and information, broadcasting and exhibitions, conferences and seminars.
“The digital marketing subsector was responsible for much of the activity and accounted for 41% of the segment’s volume in Q1 2014,” Klein noted. “The lines between content, marketing, and advertising are blurring, which has become evident when looking at WPP and other acquirers that are active in the space.”