Argos Mid-Market Index March 2014 – Further increase in the Index, driven by trade buyers

Argos Mid-Market Index March 2014 – Further increase in the Index, driven by trade buyers

Argos Mid-Market Index March 2014 – Further increase in the Index, driven by trade buyers green_squares


Paris, 13th May 2014 – In the 1st quarter 2014, the valuation for acquisitions of medium sized unquoted companies in the Eurozone stands at 7.8x historical EBITDA, showing an increase of 4% over the previous quarter.  vignette_index

Even though Mid-Market transactions have remained relatively stable (with a volume equivalent to the 3rd quarter 2013), multiples offered by trade buyers have increased by 9% over the previous quarter to reach 8.3x EBITDA.

This progression is explained by higher confidence levels of quoted buyers (at a record level this quarter at 61% of trade buyers) following the continued improvement in stock markets and the increasing proportion of foreign buyers, notably North Americans who tend to pay higher multiples.

Prices paid by private equity funds remain stable at 7.3x historical EBITDA. This is in spite of a reduction in activity (in volume terms) of 28% compared to the 4th quarter 2013 and in the context of the confirmed fund raising recovery seen in the 2nd half of 2013.

« Within the context of an improvement in economic prospects in the Eurozone, this newly recorded increase in the Argos Mid-Market Index demonstrates higher investor confidence, particularly from overseas » 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 €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 (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: July 2014

Contacts Argos Wityu : Gilles MOUGENOT, Raphaël BAZIN, Constance JAY
Press: Céline LANOUX,  clanoux@argos.wityu.fund, Tel. +33 1 53 67 20 50
Contact Epsilon Research: Grégoire BUISSON,  gregoire.buisson@epsilon-research.com, Tel. +33 1 47 70 30 24

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