The index regains its all-time high level of 2006
In the 4th quarter of 2015, the Argos Mid-Market Index continued to increase (+7%) to 9.1x EBITDA, regaining its record level of the 2nd half of 2006.
Even though Private equity funds multiples are also sustaining the increase in multiples (9.0x EBITDA) during the last quarter of 2015 (9.0x l’EBITDA), the growth in the Argos Mid-Market Index is driven by the recovery in multiples paid by trade buyers to 9.2x EBITDA (+ 15% compared to the 3rd quarter of 2015). This large increase stems from a combination of elements:
– Increases in mid-market M&A activity in the Eurozone during the 4th quarter 2015 (+7% in volume and +45% in value).
– Recovery of stock markets in the last quarter, which confirms the relationship between prices paid by strategic buyers and financial markets
– Over ¾ of the transactions realized buy strategic buyers are led by overseas buyers, of which 59% are outside the Eurozone.
« Even though the recovery of the M&A activity in the Eurozone stays below the level of activity in the rest of the world, we clearly observe a renewed interest from overseas strategic buyers, particularly Americans and Asians, towards European companies” 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 May 19th 2016
Argos Wityu Contacts : Gilles MOUGENOT, Raphaël BAZIN
Press : Sonia Popoff, email@example.com, Tél. +33 1 53 67 20 50
Epsilon Research Contact : Grégoire BUISSON, firstname.lastname@example.org, Tél. +33 1 47 70 30 24