Latest release - H1 2009
Unlisted mid-market valuations fall to an historic low
Paris, 30th September 2009
As measured by the Argos Mid-Market Index, the level of unlisted mid-market company valuations in the euro zone has declined for the 4th consecutive semester. For the first half of 2009 it falls to 6.2x EBITDA, or its lowest level since the Index was created in December 2004.
Buyers seem more cautious in reaction to deteriorating economic performances of target companies (in the euro zone, a decline in GDP of 4.6% in Q2 2009 compared to Q2 2008) and absence of short to mid term visibility. Furthermore, financing conditions have become more difficult. In particular, few banks are willing to finance buyouts transactions and only do so under very tough conditions, which brings down leverage and valuations.
“The decline of valuations is explained in part by the fact that some sellers either cannot or do not wish to put off divestments and are thus willing to accept lower valuations,” explains Gilles Mougenot, President of Argos Soditic.
Download the complete Index : H1 2009 (PDF)
Previous releases (PDF)
About the Argos Mid-Market Index
The Argos Mid-Market Index measures the evolution of European private mid-market company prices. Carried out by Epsilon Research for Argos Soditic and published every six months, it is based the following criteria:
- median EV/EBITDA multiples on a twelve-month rolling basis (year N-1)
- mid-market companies (Equity value between €15m and €150m)
- target based in a Euro zone country
- acquisition of a majority stake
- certain activities excluded (financial services, real estate, high-tech)
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