Acquisition prices of unlisted European SMEs reach new historic high of 10.1x
M&A activity in Europe continues to slow due to sharp decline in number of corporate sellers

!#!15/11/2019 – France – Press Release!#!

Paris, November, 15, 2019

 Argos Wityu, the independent European investment fund, and Epsilon Research, the online platform for the management of M&A transactions on unlisted companies, today published the mid-market Argos Index® for the 3rd 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.

Acquisition prices of unlisted European SMEs reach the new historic high of 10.1x EBITDA

The mid-market Argos Index® has remained remarkably stable at a historically high level.

Download Argos Index September 2019However, this stability conceals two underlying differences:

A steady difference between the multiples paid by strategic buyers, which increased to 11.0x EBITDA this quarter, and those paid by private equity funds, which were virtually stable at 9.6x EBITDA.

Multiples of listed mid-market companies in the Eurozone stood at 8.4x EBITDA, which is 30% below the acquisition multiple for unlisted mid-market companies in the Eurozone, at 11.0x EBITDA. The gap is narrower for acquisitions made by private equity funds.

M&A activity in Europe continues to slow due to a sharp decline in the number of institutional sellers

The reversal of the M&A market’s upward trajectory (in volume) that began in early 2019 has been confirmed by a decline in value of 11% worldwide and 32% in Europe. Eurozone mid-market M&A activity followed the same trend in Q3 2019, declining 26% in volume and 34% in value compared to the second quarter.

Although the volume of private equity exits has been stable for several years, the number of corporate sales of subsidiaries has fallen since 2018. This decline sharpened in Q3 2019. Divestiture of subsidiaries, once the principal source of unlisted transactions, now only accounts for 30% of them. This lack of supply partly explains the volume decline, despite it being a seller’s market.

About Argos Wityu

Argos Wityu is an independent European investment fund that supports companies in the transfer of business ownership. It has assisted more than 80 entrepreneurs, focusing its investment strategy on complex transactions with emphasis on transformation, growth, and close collaboration with management teams. Argos Wityu seeks to acquire majority interests and invest between €10m and €100m with each transaction. With €1bn under management and 30 years of experience, Argos Wityu operates from offices in Brussels, Frankfurt, Geneva, Luxembourg, Milan and Paris.


Coralie Cornet Communication Director +33 1 53 67 20 63

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: 

  •  EMAT, the largest database of European private company transaction multiples, with detailed analysis of 8,000+ M&A deals, ranging from €1m to €500m in value, covering all industry sectors;
  • Indices and studies published regularly by Epsilon, such as the Argos Index;
  • Cloudbased software for M&A contacts and project management (“M&A CRM Suite”); and for valuation projects (comparables, private equity fund portfolios).

About Argos Index® mid-market

The Argos Mid-Market Index measures the evolution of euro zone private Mid-Market company valuations. Carried out by Epsilon Research for Argos Wityu and published every three months, it reflects median EV/EBITDA multiples, on a six-month rolling basis, of Mid-Market M&A transactions in the euro zone. The sample of transactions is selected using the following criteria: acquisition of a majority stake, target based in a euro zone country, Mid-Market (equity value in the €15m-€500m range), certain activities excluded (financial services, real estate, high-tech), availability of relevant target financial data.

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