Argos Mid-Market Index December 2014: Increase of the Argos Mid-Market Index which has been extended to include transactions of up to €500M
Paris, March 19th, 2015 – In the 4th quarter, the Argos Mid-Market Index recorded an increase to 8.1x historical EBITDA while M&A activity decreased slightly in volume terms.
In the 4th quarter, the Argos Mid-Market Index, which has been extended to include transactions of up to €500m of equity value, increased to 8.1x EBITDA and remains at a high level (10% above its 10 year average).
The increase in the Index is linked to the improvement in prices paid by industrial buyers to 8.0x EBITDA (+7% compared to the 3rd quarter), driven by the stock market recovery. Supported by a financial environment which remains favourable (financing, rates, dry powder) and by the fierce competition between funds, prices offered by financial investors remain at a high level at 8.4x EBITDA.
The increase comes at a time when M&A activity is increasing in value terms over the second half of the year over the two segments:
- +14% compared to the 1st half in the segments €15m-€150m,
- +12% in the segments €150m-€500m.
The increase is 30% over the year 2014 for the whole of the Mid-Market.
The number of operations dropped by 9% in the 4th quarter and increased by 3% in 2014 compared to 2013 (in the same proportions of the two segments in the Argos Mid-Market). The continuing economic difficulties in the Eurozone, with growth weaker than forecast, have continued to limit the recovery in the M&A Mid-Market activity.
“The last quarter of 2014 marked a return of the trade buyers, driven by the growth in stock markets and with large amounts of cash available” remarks Louis Godron, President of Argos Wityu France.
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 €10m 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 (€1m to €500m 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 €500m),
- 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 19th, 2015
Argos Wityu contacts: Gilles MOUGENOT, Raphaël BAZIN
Press: Stéphanie LAFITTE, firstname.lastname@example.org, Tél. +33 1 53 67 20 50
Epsilon Research contact: Grégoire BUISSON, email@example.com,
Tél. +33 1 47 70 30 24