AdMedia Partners, a leading media M&A advisor, performs an annual survey of senior executives. This year’s survey shows an expected deal increase for mergers and acquisitions in the media and technology industry. The following key points highlight AdMedia’s findings.
2015: An Eventful Year for M&A
Approaches by buyers up 68%, slightly higher than 63% reported in 2014.
- Offers received by media and technology companies this year increased to 29%, up from the 23% reported the previous year.
- Actual closed media deals remained in line with 2014.
- Although buyers looking for deals went up, this doesn’t mean deals necessarily closed; only 29% made one or more acquisitions down from last year’s 35%.
2016: M&A Positive Outlook
- 81% forecast that deals by strategic buyers will increase for 2016. But, the deal activity for financial buyers in 2016 is about 44%, lower from last year which was 55%.
- The forecast is positive for several M&A sectors especially for digital, analytics, and social media businesses. Sellers’ intention to sell went up by 14 points to 54% compared to last year’s 40%. However, intent to seek investment went down by 14 points to 21% from the 35% last year.
- For the first time in a decade, 79% believe it is both a good time to buy and a good time to sell. This reflects low interest rates and strong current values.
- 74% expect that digital is likely to represent 40% or more of their business in 2 years, an increase from the 46% currently reported. 35% expect the same increase for growth in mobile.
- More than 50% expect an additional 40% growth for social (55%), custom content/ native ads (55%), programmatic (57%), mobile (65%, and video (53%).
- 84% expect more mature sectors of search and display to grow less than 15%.