Paris, July, 24, 2019
Argos Wityu, the European independent private equity group, and Epsilon Research, the online platform for the management of unlisted M&A transactions, today published the mid-market Argos Index® for the 2nd quarter of 2019. This index, launched in 2006, measures changes in the valuations of Eurozone private mid-market companies in which a majority stake has been acquired during the last six months.
Baisse de l’activité M&A en Europe au 1er semestre 2019
In the 2nd quarter of 2019 the mid-market Argos Index® remained stable at a historic high of 10.0x EBITDA.
However, this stability conceals three differences:
- Multiples paid by strategic buyers fell slightly to 10.3x EBITDA, while multiples paid by private equity funds remained relatively stable (9.5x EBITDA in the 2nd quarter).
- These multiples contrast with those for listed mid-market companies, despite their 2nd-quarter increase to 8.8x EBITDA(1), in line with the growth of listed market indexes(2).
- Valuation multiples for transactions between €150m and €500m continued to rise during the quarter, while transactions between €15m and €150m declined.
(1) Source: InFront Analytics
(2) The EURO STOXX® TMI Small Index rose by 1.7% in Q2 2019
M&A activity in Europe slows in the 1st half of 2019
In the first half of 2019, mid-market M&A activity showed a moderate 20% decline in value in the Eurozone, while the same segment fell 48% in the United Kingdom, due to the lack of visibility as to the terms of Brexit, scheduled for the end of the year, and total M&A activity, all segments combined, dropped 57% in Europe.