Introduction

We are pleased to share with you a summary update of market valuations and activities in the Asia Pacific education services industry for the first half of 2020.

Logistics is one the key sectors in which Armor specializes and closely follows market trends. Please contact us for a further discussion.

Based on quarterly data, valuations of Asia Pacific’s public companies have fluctuated over the 18 months ending June 2019 with an overall slight downward trend.

Based on 90-100 selected companies, the table above illustrates that industry returns and companies’ margins have been stable over the past years.

While the M&A deal count in H1 2019 was slightly higher vs. H1 2018, the total transaction value was less than half (USD 336m vs. 709m), mainly due to smaller sized transactions in Q1 2019.

Armor selected the largest M&A transactions across the region in 2019 H1 for which information on Implied Enterprise Value (EV) was available. The EV/Revenue multiple shows that while investors pay a median of 0.5x, the relative difference between high and low multiples is large.