Q1 entry multiples drop to lowest level since Q1 2016

Clearwater International Multiples Heatmap Analysis Q1 2018 — PE deal valuations drop for the third consecutive quarter, as the Nordic region continues to see the highest entry multiples

Unquote & Clearwater International
19 June 2018

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European PE deal multiples declined to 9.9x in the first quarter of 2018, according to the recently released Clearwater Multiples Heatmap Q1 2018 Update, the first time the average multiple has fallen to single digits since Q1 2016.

The Unquote research team, alongside Clearwater International's sector groups and European offices, collected data on 2,818 private equity deals across Europe between 1 January 2014 and 31 March 2018.

The figures for the first three months of 2018 show that the average entry multiple paid across all sectors combined has fallen steadily since the second quarter of 2017.

TMT continued to be the sector with the highest average multiples over the course of the last six quarters at 11x. However, financial services returned to being the hottest sector in Q1 2018 with the average multiple rising from 9.4x to 11.4x.

On a regional basis, the Nordic region has seen the highest valuations across both the last six quarters and Q1 2018 alone, at 11x and 10.5x respectively.

Click here to download the full Clearwater Multiples Heatmap Q1 2018 Update