Hampleton: M&A market report for the second half of 2024

According to a Hampleton study, e-commerce M&A transactions in the first half of this year increased slightly from the second half of 2023, but remained sluggish compared with the first half of 2023 and the first half of 2022. The number of transactions in the first two quarters of this year exceeded 1,000, but was lower than the approximately 1,200 in the same period last year.

Transaction volumes over the past year (Q3 2023 to Q2 2024) are closer to pre-pandemic levels than post-pandemic levels (peak in H2 2020 to H1 2022).

Valuations have also been declining over the past few quarters. The median 30-month EV/EBITDA in the first half of 2024 is 10 times, down from 10.1 times in the second half of 2023, 10.3 times in the first half of 2023, and 10.8 times in the second half of 2022. At the same time, the median revenue multiple (EV/R) has fallen to 2 times from 2.4 times in the second half of 2023, and 2.7 times in the first half of 2023 and the second half of 2022, respectively.

Seven companies have acquired at least five e-commerce targets since 2021. The most prolific are Havas, Fraser Group and Thoma Bravo, with six acquisitions each.

The "E-commerce" market covered in the report contains five sub-sectors, each of which has contributed to transaction flow in varying amounts over the past two and a half years. Since 2022, the Internet Services and Portals sub-sector has been leading the way, accounting for 33% of the total transactions. It is followed by Digital Commerce Software, which accounts for 30% of transactions, followed by Agencies and Service Providers (17%), Online Retail (11%) and Media, Social and Gaming (9%).

Geographically, North America has been the largest target during this time period, accounting for about half (48%). Europe has one-third (33%), and the rest of the world has one-fifth (19%). 78% of companies acquired in Europe were acquired by companies headquartered in Europe.

​The document link will be shared to 199IT Knowledge Planet. Scan the QR code below to view it!