Argos Mid-Market Index Sept 2013 : Stability in the Argos Index, recovery in M&A activity

Argos Mid-Market Index Sept 2013 : Stability in the Argos Index, recovery in M&A activity

Argos Mid-Market Index Sept 2013 : Stability in the Argos Index, recovery in M&A activity green_squares

Paris, 12 November 2013 – Private equity valuations in the Eurozone remained stable this quarter at 6.7x EBITDA whilst M&A activity increased in both volume and value.


The stability of the Argos Mid-Market Index masks two different dynamics this quarter: an increase in multiples paid by funds from 6.7x to 7.0x EBITDA as opposed to a decrease in multiples paid by trade buyers from 6.7x to 6.1x EBITDA.

This diverging evolution is explained on the fund side by an intense interest in the limited number of companies with strong potential and for industrial players by the withdrawal of quoted companies from the acquisition market.

After an historically large fall in the previous quarter, M&A activity saw an increase of 87% in value terms and 37% in volume terms driven by LBO’s which have doubled compared to the previous quarter. After several semesters of weak activity, funds seem to be benefitting from the improvement in the macroeconomic environment in the Eurozone to resume acquisitions.

It should however be noted that compared to the 3rd quarter 2012, M&A activity only increased by 9% in volume and 14% in value terms.

« After six quarters of contraction the emergence from recession seems to be confirmed with several positive signs and this will gradually give confidence back to investors» declared Gilles Mougenot, President of Argos Wityu Partners.


About Argos Wityu

Argos Wityu is an independent European private equity group with offices in Paris, Brussels, Milan and Geneva. Since its creation in 1989, Argos Wityu has carried out more than 50 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: February 2014

Contacts Argos Wityu : Gilles MOUGENOT, Jérémie FALZONE, Constance JAY
Press: Céline LANOUX,, Tel. +33 1 53 67 20 50

Contact Epsilon Research: Grégoire BUISSON,, Tel. +33 1 47 70 30 24


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