Latest release - March 2013 : A slight increase in valuations and a new slump in M&A activity
The unlisted Mid-Market valuations in the Euro zone have risen slightly this quarter, rising from 6.3x to 6.6x EBITDA, whereas M&A activity again fell, following an increase in the previous quarter.
Paris, 14th May 2013
The Argos Mid-Market Index rose in the 1st quarter of 21013, to 6.6x EBITDA i.e. an increase of 5% compared to the last quarter of 2012.
This slight recovery can be attributed principally to the increase in the prices paid by industrial buyers (from 6.3x to 6.5x EBITDA) and in particular the listed buyers, encouraged by the strong rise in the Stock markets since January 2012.
Although they have fallen from 7.1x to 6.6x EBITDA (returning to their level in the 2nd and 3rd quarters of 2012) the prices paid by the LBO funds remain almost identical to those paid by the industrials, with the funds concentrating on the most attractive companies.
In spite of a rise in the previous quarter, M&A activity has fallen sharply this quarter (13% in volume and 36% in value) returning to its level in the 2nd and 3rd quarters of 2012 in an economic context which is durably depressed in the Euro zone.
LBO activity also fell, by 12% in volume, this quarter. Only foreign buyers maintained their level of activity, as they continued to capitalize on the withdrawal of Euro zone industrial buyers. Their share in Mid-Market transactions stood at 37% this quarter.
« The continuing weak activity in the M&A market can be attributed notably to the persistence of the macro-economic uncertainties in the Euro zone and to the increasing likelihood of a recession » comments Gilles Mougenot, President of Argos Soditic Partners.
Download the complete Index : March 2013 (PDF)
Previous releases (PDF)
- Dec 2012
- Sept 2012
- June 2012
- March 2012
- Dec 2011
- June 2011
- Dec 2010
- June 2010
- Dec 2009
- June 2009
- Dec 2008
- June 2008
About the Argos Mid-Market Index
The Argos Mid-Market Index measures the evolution of European private mid-market company prices. Carried out each quarter by Epsilon Research for Argos Soditic, it is based the following criteria:
- median EV/EBITDA multiples on a six-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)
Argos Mid-Market Index next release : July 2013