Nordic region sees highest entry multiples for sixth quarter running

Unquote team
06 August 2019

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The highest last-12-month (LTM) average valuations for private-equity-backed transactions were seen in the Nordic region in Q2 2019, despite a 3% reduction on the previous quarter, according to the latest Clearwater International Multiples Heatmap.

The Q2 2019 edition of the Heatmap, published in association with Unquote, reported a slight cooldown across Europe, though the average multiple still exceeds 10x. The last quarter saw a 2% decrease in the LTM average multiple for PE-backed transactions when compared with Q1 2019, but at a consistent level against multiples seen in the same quarter in 2018.

The rest of Europe saw only minor changes compared with the previous quarter. The UK & Ireland and southern regions saw LTM average multiples remain broadly flat. At 10.9x, the UK & Ireland average remains the second highest in Europe. Meanwhile, the DACH, French and Benelux regions each saw a 2-3% decline in LTM average multiples compared with Q1. The DACH decline has been going on for the past four quarters, with the Q2 average dipping just below 10x for the first time since Q1 2018.

The full findings over the quarterly update, as well as specific focuses on the industrials & chemicals sector and pricing in the Nordic market, can be accessed here.