M&A in the games sector – 2017 recap and 2018 predictions
summary
2017 sees five mega-deals make up over 70% of announced value and total announced deal value hits $5.6bn, with large acquirers paying about 3x LTM sales and ~11x EBITDA while small to mid deals average ~1.6x upfront cash and ~9x EBIT and rely heavily on earnouts. Nordic listed buyers (Stillfront, Paradox, MTG) actively acquire smaller studios. 2018 predicts fewer total announced dollars, a settling of the market, and buyers favor studios with profitable revenue roughly above $4–5m and teams of 15–20+.
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chapters (14)
- 0:00Intro
- 0:47About AG Nisha Capital
- 2:55Industry trends
- 4:53Recap of 2017
- 5:36Large transactions
- 6:22Valuation multiples
- 7:28Small to midsized deals
- 9:05Multiples
- 10:03Summary
- 11:16Midsize studios
- 14:08Share price performance
- 16:32What are these guys looking for
- 18:34Be prepared
- 19:23Predictions
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