Argos Mid-Market Index September 2014 : Decline of the Argos Mid-Market Index in a growing M&A Market

Argos Mid-Market Index September 2014 : Decline of the Argos Mid-Market Index in a growing M&A Market

Argos Mid-Market Index September 2014 : Decline of the Argos Mid-Market Index in a growing M&A Market green_squares

Paris, November 12th, 2014 – The Argos Mid-Market Index recorded a decline in the 3rd quarter to 8.0x historic EBITDA while M&A activity is increasing in volume and value.


Valuation multiples of medium sized unquoted companies in the Eurozone experienced a decline of more than 7% this quarter from 8.6x to 8.0x historical EBITDA.

This decrease is related to the drop in multiples paid by trade buyers to 7.9x EBITDA (-11% compared to the second quarter) due to the correction in the equity markets in the third quarter and a negative outlook weighing on the Eurozone – no growth, deflation risks and geopolitical uncertainty – that has fuelled the loss in investor confidence.

This decline occurs in the context of a slight increase in M&A activity (+ 6% in volume and + 20% in value compared to the second quarter), driven primarily by a 10% increase in the number of private equity transactions. Although the activity is boosted by several major transactions, it still remains below 2010-2011 levels, and does not reflect, in the same proportions, the recovery of M&A activity in Europe.

“We see a dichotomy between industrial buyers, mainly listed, which are reflecting the decline in equity markets, and buyout funds which currently have substantial cash reserves” according to Gilles Mougenot, President of 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 (€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 €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: early March 2015
including the extension of the index (company valuations until €500m)

Argos Wityu Contacts: Gilles MOUGENOT, Raphaël BAZIN, Constance JAY
Press: Stéphanie LAFITTE,, Tél. +33 1 53 67 20 50

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

Download the Argos Mid-Market Index

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