Latest M&A Report: 2007 B-to-B Deal Volume Plummets
Trade mag deals wipe out 53 percent gain in 2006 with a 51 percent drop in 2007.
Investment advisory firm Whitestone Communications released the latest in a series of M&A wrap-up reports from the media banking community Monday, highlighting a fall from M&A grace for b-to-b in late 2007. Whitestone recorded 27 deals last year for that category, compared to 55 in 2006.
Dollar value, however, held steady at a little more than $2 billion thanks to a few larger deals, namely Veronis Suhler Stevenson’s purchase of Advanstar for $1.4 billion and Incisive’s acquisition of ALM for $630 million–which leaves scant room for the remaining 25 deals.
It’s worthwhile to note, however, that the various media bankers track markets differently. The Jordan, Edmiston Group, for example, tracked 38 deals in the b-to-b category, with a total value of about $3.2 billion. Berkery Noyes also tracked 38 b-to-b deals. But the common theme is deals decreased significantly from 2006: 55 to 38 according to Berkery; and a less dramatic 42 to 38 according to JEGI (but value plummeted 47.4 percent).
On the consumer magazine side, Whitestone says that of the deals it tracked, volume decreased slightly from 31 in 2006 to 30 in 2007, but value skyrocketed by 1,000 percent, going from $420 million in 2006 to $4.7 billion in 2007. Leading the charge is the pending $2.8 billion Macrovision-Gemstar-TV Guide deal.