Mid-market valuations close to 2007 levels, says Argos research

At 3.9%, the increase on the median multiple of 7.8x seen in Q3 2014 is modest, but the multiples recorded throughout 2014 stand in stark contrast to the 6.8x average witnessed across both 2012 and 2013. The last time the index exceeded the 8.1x mark was in the second half of 2007.

It is worth noting that Argos Soditic and Epsilon Research broadened the scope of the Index from Q4 2013, to include deals valued at between €15–500m. The index previously covered transactions valued in the €15–150m range.

The increase in Q4 2014 was mainly driven by higher multiples paid by corporate buyers – the median EBITDA multiple paid by such buyers stood at 8x, against 7.5x in the previous quarter. Espilon and Argos linked this uptick to recovery on the stock markets, with a large proportion of corporate buyers featured in the index (60%) being listed players.

Buyout houses, meanwhile, continued to pay higher multiples than their corporate counterparts. Despite a small dip to 8.4x EBITDA (against 8.5x in Q3 last year), the median entry multiple recorded for private equity transactions is the second-highest seen for nearly 10 years, according to the index.

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• Topics
• Buyouts
• Industry
• Argos Wityu
• Mid-market buyout