Entry multiples still in double digits for most popular European markets
The latest unquote” and Clearwater International Multiples Heatmap Report, now available for download, neatly reflects the ever-challenging environment for private equity investors.
Pricing in the most popular markets within Europe remained high in Q4 last year, with France, the Nordic countries and the UK witnessing average entry multiples in the double digits.
The most affordable markets unsurprisingly remain central and eastern Europe as well as the southern European countries, although pricing in these areas is still significantly higher than it was around the same period last year. Southern Europe, for instance, saw a 9.1x average purchase multiple in Q4 last year, compared with 7.6x in the first quarter of 2015.
Sectors-wise, financial services continued to see significant appetite at the tail end of last year, with average multiples closing in on the 15x mark. By comparison, the industrial sector was more keenly priced, with entry multiples below the European average.
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