European entry multiples hit new high in 2017 despite Q4 cooldown

Multiples Heatmap in association with Clearwater International

Unquote & Clearwater International
28 March 2018

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The average EBITDA multiple for European buyouts increased to 10.4x in 2017 compared with 10.2x in 2016, according to the recently released Clearwater Multiples Heatmap Annual Review.

The Unquote research team, alongside Clearwater International's sector groups and European offices, collected data on 2,348 private equity deals across Europe between 1 January 2014 and 31 December 2017.

The full-year figures for 2017 show that private equity deal volume in Europe increased to its highest level in four years during 2017, with the average EBITDA multiple increasing to 10.4x in 2017 versus 10.2x in 2016.

TMT saw the highest average prices paid in 2017 at 10.9x, slightly down on 2016 (11.1x). Financial services was the second hottest sector during 2017 with an average multiple of 10.7x, jointly with healthcare, but experienced steady price deflation through the year from 11.9x in Q1 2017 to only 9.4x in Q4 2017.

The Nordic region continued to be the hottest region with an average 2017 multiple of 11x, despite the Q4 2017 multiple for the region dropping to 10.4x from a peak of 11.8x in Q2 2017.

Click here to download the full Clearwater Multiples Heatmap 2017 Annual Review