RICHARD A. MARTIN JR. // Senior Director, Merrill Corporation
Q HOW HAS THE TRAVEL INDUSTRY FARED IN M&A DEALS OVER THE LAST TWO YEARS?
RM: According to recent M&A articles on skift.com, Marriott is bullish
on merger and acquisitions activity, as evidenced by its purchases of
AC Hotels, Gaylord Hotels, Protea Hospitality Group, and Delta Hotels
and Resorts in recent years. CEO Arne Sorenson said the quartet of
acquisitions Marriott made over the last three to four years carried a price
tag of $100 million to $200 million at multiples of up to 10 times EBITDA.
Looking at Merrill DataSite deal data, in the past 24 months we’ve seen
a 31 percent increase in travel and hospitality data room projects in 2014
over 2013, the vast majority being M&A. Looking at projects coded for
transportation from that same period, the growth was flat year over year.
Q ARE PRIVATE EQUITY BUYERS INTERESTED IN TRAVEL TRADE DEALS?
RM: According to an article on ttgdigital.com, “The travel industry is
The travel sector is doing remarkably well and private equity investors
likely to see continued interest from the private equity sector in 2015 as
the appetite for investment remains strong.”
The article cites research from Catalyst Corporate Finance, which says
there were 36 deals completed in 2014, a 24 percent increase over 2013.
Private equity firms participated in 10 of the deals—compared with nine in
2013. While they remain in the minority, the prices involved tend to be high.
have gone for it big time in 2015.
Q HOW DOES DATASITE WORK WITH COMPANIES IN THE TRAVEL INDUSTRY TO STREAMLINE POTENTIAL
MERGERS AND ACQUISITIONS?
RM: Merrill DataSite provides significant benefits across multiple
transaction types, including M&A advisory, document warehousing, IPO
and secondary offerings, asset purchases, venture capital due diligence,
biotech licensing, commercial and corporate real estate ventures,
bankruptcies, financial restructuring, preparing-for-exit strategies,
and many other matters that require extensive document sharing.
RICHARD A. MARTIN JR.
is a senior director at Merrill
Corporation, responsible for Merrill
DataSite’s global marketing group.
Nearly two decades of marketing
experience working and residing
in the United States, the United
Kingdom and Europe has developed
Martin’s understanding of disparate
corporate cultures and the global
financial industry, evidenced by
a successful record of growing