Multiples Heatmap: winter cooldown across Europe

The average valuation for PE backed transactions dropped by over 10% in the quarter and there is also a 5% decline when compared to the same quarter in 2017.

For the first time since Q3 2016, the UK and Ireland region was the hottest in terms of valuation with the average multiple for the quarter also being the highest in the region since Q1 2015. Multiples in the region grew steadily throughout 2018, increasing by 11%. The Southern Europe region remained flat in Q4 2018, but multiples have reduced by 8% when compared to the same quarter in 2017.

Pricing reductions were seen in all other regions. The DACH region dropped by 30% in Q4 2018, falling from the joint hottest region in the previous quarter to the sixth hottest in Q4 2018. Multiples in both Central and Eastern Europe and the Nordic region dropped 23% in Q3 2018, with Benelux and France seeing smaller reductions.

The only sector to see an increase in multiple in Q4 2018 was financial services, which saw an increase of 8%, taking the average multiple to its highest since Q4 2015.

Deals over €500m continued to see the highest average multiple, with an increase of 7% and 20% when compared to Q3 2018 and Q4 2017, respectively.

Click here to download the full Q4 update of the Multiples Heatmap, including detailed analysis of the French market and the financial services sector.

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• Topics
• Investments
• UK / Ireland
• France
• Benelux
• Southern Europe
• DACH
• CEE
• Nordics
• Financials
• Clearwater
• Unquote Data
• Unquote Reports
• pricing