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European entry multiples rise to 10.2x in 2016

Multiples Heatmap in association with Clearwater International
CEE, Nordic and southern Europe regions drive average price increase, while UK valuations drop
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Europe saw an 18% uptick in deal volume in 2016, according to research by unquote" and Clearwater International, with private equity funds paying on average 10.2x EBITDA, compared with 10x in 2015.

Central and eastern Europe, the Nordic region and southern Europe saw the largest growth in valuations, witnessing average EBITDA multiples grow year-on-year from 8.7x to 10.5x, 9.9x to 10.6x and 9.1x to 10.1x respectively.

While prices in Benelux, France and DACH remained relatively stable compared with 2015, the UK and Ireland saw a slight decrease in average entry multiples from 10.8x to 10.4x.

The technology, media and telecommunications sector witnessed the highest prices in 2016, with deals valuing assets at 11.1x EBITDA on average, while the automotive sector was the least expensive with an average multiple of 9.2x.

The annual increase in valuations across Europe took place gradually over each quarter. The figure stood at 9.8x after Q1 and increased in each three-month period before reaching 10.6x in Q4.

Click here to read the unquote" and Clearwater Multiples Heatmap Analysis overview for 2016.

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