Q3 Report

We put together a complete picture of every one of the six sectors we track and all 26 subsectors when we do our quarterly report webinars. This blog will boil it down to the basics, but if you want the whole rundown, you can check out our webinar here.

The third quarter set records in the public markets sector, as active M&A just kept on going. Overall deal activity was a bit lower than expected, but the volume of Megadeals (deals over $1B) was way up, with a total of 15, which indicates strong demand for smart transactions.

The Horizontal sector remains a substantial leader, hitting 12-month highs in sales and earnings multiples in September. Every one of the eight subsectors here trended upward.

Valuations in the Vertical sector are climbing as well, with the applications market reaching a multi-year high in sales and EBITDA. This was led, as usual, by healthcare multiples.

The Internet sector also hit an EBITDA 12-month peak, and sales multiples are catching up, resurging to their highest point since the beginning of the year.

The Consumer sector has remained on a steady trajectory. There has been a slight dip in the digital content subsector, but it is more than compensated for with the strength of the video game subsector.

The Infrastructure sector remained strong throughout the third quarter, with only a slight decrease in the systems management subsector, which dropped a bit from Q2 numbers, which didn't affect the number of big deals we saw in this sector during Q3.

Finally, IT Services continues to have a strong year, also reaching 12-month highs in sales multiples. The sales multiples in the Asian IT market alone reached a six-month high in September.

Posted by , Executive Vice President, Research & Technology on 23 October 2013
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