Argos Mid-Market Index Dec 2013 : Big increase in the Argos Index, gradual recovery in M&A activity
Paris, 11th February 2014 – The Argos Mid-Market Index shows a big jump to 7,5x EBITDA in a recovering M&A market
The Argos Mid-Market Index has jumped this quarter from 6,7 to 7,5x EBITDA (+12% compared to the 3rd quarter).
This evolution is explained primarily by the increase in multiples paid by trade buyers (+25% in the 4th quarter at 7.6x EBITDA) who are comforted by increases in stock markets as well as improvements in the economic environment in the Eurozone.
Interestingly there are a high proportion of overseas purchasers among these trade buyers, in particular Americans. For the first time since 2008, the majority of overseas buyers are American (51% of transactions).
LBO activity is showing strong growth in the second half of the year with an increase of +85% in volume and +94% in value mainly due to high levels of available capital.
However, even though the M&A mid-market is recovering gradually in the second half of the year compared to the first half (+18% in volume and 60% in value), it is still weaker than 2012.
«This quarter confirms the gradual return of confidence to investors who were burned by the financial crisis thanks to the easing of macro-economic risks in the Eurozone” Gilles Mougenot, President, Argos Wityu Partners.
About Argos Wityu
Argos Wityu is an independent European private equity group with offices in Paris, Milan, Brussels and Geneva. Since its creation in 1989, Argos Wityu has carried out more than 60 transactions focusing on management buy-outs and buy-ins in small and medium companies. Argos Wityu typically takes majority stakes ranging from €5m to €60m in companies with revenues of €20m to €400m.
With €675m under management, the firm has developed a track record of unusual, complex and off market transactions where the firm’s combination of local presence and international experience is able
to add value to the small and medium-sized businesses it invests in.
About Epsilon Research
Epsilon Research is an independent research and financial analysis bureau specializing in the M&A/ private equity markets. It provides research, deal analysis and market intelligence on private company M&A and LBO transactions.
Its key product, EMAT («Epsilon Multiple Analysis Tool™ »), is the largest database for European private company transaction multiples, with detailed analysis of 5,000+ M&A deals (1 to 500 m€ value) covering all industry sectors. It has quickly become a reference source for its customers (investment funds, banks, accountants, M&A advisors).
About the Argos Mid-Market Index
The Argos Mid-Market Index measures the evolution of European private mid-market valuations. Based on the median of historical EV/EBITDA multiples, on a six-month rolling basis, it is carried out by Argos Wityu and Epsilon Research, and published every three months. The transaction sample fulfils the following criteria:
- Mid-market companies (equity value between €15m and €150m)
- Target based in a euro zone country
- Acquisition of a majority stake
- Specific industries excluded (financial services, real estate, high-tech)
Next Argos Mid-Market Index: May 2014
Contacts Argos Wityu : Gilles MOUGENOT, Jérémie FALZONE, Constance JAY
Press: Céline LANOUX, email@example.com, Tel. +33 1 53 67 20 50
Contact Epsilon Research: Grégoire BUISSON, firstname.lastname@example.org, Tel. +33 1 47 70 30 24