Investment bank Berkery Noyes’ first-half report for 2014 shows total value for mergers and acquisitions (M&A) in the media and marketing industry up on a half-year basis, from $45.8 billion to $49.8 billion.
Total value of M&A in the industry had a sharp 70% increase compared with the first half of 2013, which had a total value of $29.5 billion.
But the overall growth belies another trend: a shift to smaller transactions. The report – which includes known and projected transactions – showed 82% of all transactions for the half were in deals valued under $55 million.
The large share of smaller deals in the overall M&A landscape has been of concern to some investors.
A recent report by Jordan Edmiston Group (JEGI), an investment bank, saw deals of less than $50 million comprise 83% of total volume in the media, information, marketing and technology industries. JEGI said in the report that the share of volume for smaller deals suggests "that corporations and investors are vigorously exploring acquisition opportunities but remain cautious to ‘pull the trigger’ on larger transactions as they wait for a clearer picture of the economy’s direction.”