Index declines by 6.6% in 1st quarter 2016

Index declines by 6.6% in 1st quarter 2016

Index declines by 6.6% in 1st quarter 2016 green_squares

The overall shrinkage is linked to the decrease in prices paid by buyout funds to 8.2x EBITDA, with strategic buyers holding their prices at 9.1x EBITDA.


The decrease in the index comes within the context of a fall in Mid-Market M&A activity in the first quarter (-4% in volume and -14% in value terms compared to the 4th quarter of 2015). This slowdown is however more moderate for mid-market M&A in Europe than for the global M&A market with a decline of 25% in value terms across all transactions in the 1st quarter of 2016. Several factors have increased concern and precipitated the fall in stock markets:

i) Risks from the slowdown of the Chinese economy and the continuation of a fall in the price of raw materials and petrol.

ii) The end of the US growth cycle and the strengthening of the monetary policy announced by the Fed after a first increase in rates in December 2015.

iii) A possibility of a UK exit from the EU.


« Along with the decrease of the Argos Mid-Marjet Index, what stands out for the 1st quarter of 2016 is the difference between mid-market M&A in Europe and global M&A market » remarks 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 developed the first online platform for the management of non-quoted M&A transactions, aimed at professionals: M&A advisers, private equity funds, valuators, corporates. The Epsilon Platform includes data, analysis reports, software tools and services essential to private company valuation / deal management:

(1) EMAT, the largest database of European private company transaction multiples, with detailed analysis of 6,000+ M&A deals, ranging from €1m to €500m in value, covering all industry sectors; (2) Indices and studies published regularly by Epsilon, such as the Argos Index; (3) Cloud-based software for M&A contacts and project management (“M&A CRM Suite”); and for valuation projects (comparables, private equity fund portfolios).

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: Thursday July 28th 2016

 Argos Wityu Contacts : Gilles MOUGENOT, Raphaël BAZIN

Press : Sonia Popoff,, 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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