GCG’s Q1 2023 AdTech and Marketing Services Industry Update provides an overview of the latest trends in the sector, including recent performance, valuation multiples, and the state of the middle-market M&A environment.
Key findings include the following:
- In Q1 2023, there were 86 announced AdTech and Marketing Services transactions, down from 102 in Q4 2022 and down from 125 in the prior year’s Q1. As deal activity increased in the vertical, the average deal value also increased – Q1’s average value was $399 million, up from $55 million in Q4
- AdTech and Marketing Services valuations are slow starting to rebound:
- Digital marketing services businesses traded at an average LTM revenue multiple of 1.4x in Q3 2023, up slightly from the prior quarter’s average of 1.3x
- AdTech businesses traded at an average LTM revenue multiple of 5.2x in Q3 2023, up slightly from the prior quarter’s average of 4.3x
Click here for the full update.