What do they think of the Index?
- Professor Reiner Braun, Technical University of Munich
- Éric de Montgolfier, CEO of Invest Europe
Data Publication
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Quarterly Ed., Q4 2024_____________________
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Argos Index® Mid-Market
Evolution of Euro Zone Mid-Market Private Company Prices - Quarterly Index carried out by Epsilon Research
Q4 2024: the Argos Index® continued its recovery to 9.8x EBITDA
Paris (France) – 30 January 2025 – The mid-market Argos Index® for the fourth quarter of 2024, published by Argos Wityu, the independent European investment fund, and Epsilon Research, the online platform for the management of unlisted M&A transactions, is now available. Launched in 2006, this index tracks the valuations of unlisted eurozone SMEs in which a majority stake has been acquired during the last six months.
In the fourth quarter of 2024, acquisition prices for unlisted eurozone SMEs rose again to 9.8x EBITDA. The index was boosted by a further recovery in M&A activity (except in France) and by good momentum in LBO transactions in the mid-market (between €15 million and €500 million), supported by a high level of exits by funds. The increase was underpinned by lower inflation and interest rates, including expected ECB rate cuts, along with a lower cost of capital and easier access to financing. However, the recovery in the index remains slow because of weak growth forecasts, political turmoil and geopolitical threats.
Acquisition prices for unlisted European SMEs up further to 9.8x EBITDA
- In the fourth quarter of 2024, the Argos Index® continued its recovery to 9.8x EBITDA, up 3% from Q3.
Argos Index® being driven higher by both investment funds and strategic buyers
- In the fourth quarter of 2024, multiples paid by investment funds were up 2% to 10.3x EBITDA.
- Multiples paid by strategic buyers also rose to 9.3x EBITDA despite the decline in public equity markets.
- The gap between multiples paid by investment funds and strategic buyers remained wide at 1.0x EBITDA. The average EBITDA margin of companies acquired by funds was 20% vs. 18% for strategic buyers in S2 2024.
Continued decrease in transactions at extreme multiples
- In the fourth quarter of 2024, 33% of transactions took place at extreme multiples, i.e. less than 7x or more than 15x EBITDA, which is a smaller proportion than the average seen in the last five years. That proportion has fallen very significantly as activity levels and multiples in the M&A market have recovered.
- Transactions at multiples below 7x EBITDA accounted for 20% of analysed transactions, back to their 2021/2022 level.
- The proportion of transactions at multiples of more than 15x EBITDA fell to 13%, while the proportion of those taking place at more than 20x EBITDA also fell to 3%.
Index also buoyed by the recovery in mid-market M&A activity and by the LBO market
- Mid-market M&A activity in the eurozone continued to recover, rising by 13% in volume terms and 14% in value terms in 2024 compared with 2023.
- The upturn was driven by the global recovery in the M&A market, in which companies and investment funds took a more active approach after three years of decline.
- At the same time, the LBO market also continued the upturn that began in the first half of 2023, growing by 22% in volume terms and 65% in value terms in 2024. That growth was fuelled by the sharp rebound in fund exits, with deal numbers up 40% in 2024 vs. 2023.
M&A activity in France: a special case
- In France, political turbulence arising since the July 2024 elections have created particularly difficult conditions for mid-market M&A transactions. In 2024, deal volume in France dropped by 15% while increasing by 16% in the rest of the eurozone. Given the time lag for transactions, the impact on valuations remains limited at this stage.
> You can download the full study under "Data Publication" (left)
Argos Mid Market Index - Sample Analysis
| H1 2021 | H2 2021 | H1 2022 | H2 2022 | H1 2023 | H2 2023 | H1 2024 | H2 2024 | |||||||||||||||||||||||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Sample Size | ||||||||||||||||||||||||||||||||||||||||||
| # deals retained for the index | 87 | 92 | 107 | 112 | 101 | 109 | 99 | 108 | ||||||||||||||||||||||||||||||||||
| Average Equity Value (€m) | 165.0 | 133.9 | 109.6 | 142.5 | 119.7 | 112.5 | 116.4 | 132.8 | ||||||||||||||||||||||||||||||||||
| Average N-1 sales (€m) | 112.9 | 106.6 | 120.0 | 123.8 | 112.8 | 127.0 | 112.4 | 133.3 | ||||||||||||||||||||||||||||||||||
| N-1 EBITDA margin | 16% | 18% | 13% | 16% | 17% | 16% | 16% | 17% | ||||||||||||||||||||||||||||||||||
| N-1 EBIT margin | 14% | 11% | 10% | |||||||||||||||||||||||||||||||||||||||
| Breakdown by size (equity value) | ||||||||||||||||||||||||||||||||||||||||||
| [15-49] €m | 23% | 35% | 32% | 31% | 32% | 40% | 41% | 34% | ||||||||||||||||||||||||||||||||||
| [50-99] €m | 15% | 22% | 31% | 25% | 24% | 24% | 19% | 26% | ||||||||||||||||||||||||||||||||||
| [100-150] €m | 14% | 10% | 12% | 14% | 16% | 9% | 14% | 11% | ||||||||||||||||||||||||||||||||||
| Breakdown by deal type | ||||||||||||||||||||||||||||||||||||||||||
| Acquisition | 60% | 66% | 74% | 61% | 68% | 77% | 60% | 60% | ||||||||||||||||||||||||||||||||||
| LBO | 40% | 34% | 26% | 39% | 32% | 23% | 40% | 40% | ||||||||||||||||||||||||||||||||||
| Breakdown by country | ||||||||||||||||||||||||||||||||||||||||||
| France | 48% | 37% | 30% | 46% | 35% | 30% | 51% | 33% | ||||||||||||||||||||||||||||||||||
| Germany | 12% | 13% | 17% | 9% | 13% | 19% | 10% | 12% | ||||||||||||||||||||||||||||||||||
| Italy | 7% | 13% | 18% | 14% | 14% | 18% | 15% | 19% | ||||||||||||||||||||||||||||||||||
| Benelux | 15% | 16% | 10% | 14% | 8% | 7% | 8% | 8% | ||||||||||||||||||||||||||||||||||
| Spain | 5% | 9% | 5% | 6% | 11% | 10% | 3% | 9% | ||||||||||||||||||||||||||||||||||
| Other (euro zone) | 13% | 12% | 20% | 11% | 19% | 16% | 13% | 19% | ||||||||||||||||||||||||||||||||||
| Breakdown by sector | ||||||||||||||||||||||||||||||||||||||||||
| Energy and Raw Materials | 6% | 5% | 6% | 7% | 9% | 8% | 7% | 5% | ||||||||||||||||||||||||||||||||||
| Building, Construction | 3% | 7% | 4% | 8% | 5% | 9% | 3% | 11% | ||||||||||||||||||||||||||||||||||
| Industrial Equipment | 11% | 14% | 14% | 17% | 16% | 20% | 20% | 27% | ||||||||||||||||||||||||||||||||||
| Consumer Products | 5% | 9% | 7% | 1% | 3% | 4% | 7% | 2% | ||||||||||||||||||||||||||||||||||
| Agro-Food | 8% | 2% | 4% | 6% | 4% | 3% | 6% | 4% | ||||||||||||||||||||||||||||||||||
| Healthcare-Pharmaceuticals | 18% | 11% | 5% | 11% | 10% | 7% | 10% | 8% | ||||||||||||||||||||||||||||||||||
| Wholesale, Retail | 3% | 7% | 4% | 6% | 4% | 3% | 5% | 7% | ||||||||||||||||||||||||||||||||||
| Transport | 5% | 3% | 6% | 7% | 5% | 4% | 5% | 7% | ||||||||||||||||||||||||||||||||||
| TMT | 27% | 28% | 34% | 21% | 28% | 26% | 17% | 24% | ||||||||||||||||||||||||||||||||||
| Business and Consumer Services | 14% | 14% | 16% | 16% | 16% | 16% | 20% | 5% | ||||||||||||||||||||||||||||||||||
Argos Mid Market Index - List of Underlying Transactions
H1 2004 - H2 2004 - H1 2005 - H2 2005 - H1 2006 - H2 2006 - H1 2007 - H2 2007 - H1 2008 - H2 2008 - H1 2009 - H2 2009 - H1 2010 - H2 2010 - H1 2011 - H2 2011 - H1 2012 - H2 2012 - H1 2013 - H2 2013 - H1 2014 - H2 2014 - H1 2015 - H2 2015 - H1 2016 - H2 2016 - H1 2017 - H2 2017 - H1 2018 - H2 2018 - H1 2019 - H2 2019 - H1 2020 - H2 2020 - H1 2021 - H2 2021 - H1 2022 - H2 2022 - H1 2023 - H2 2023 - H1 2024 - H2 2024
| Date | Acquirer | Target | Country | Industries | Valuation multiples | See details |
|---|---|---|---|---|---|---|
| 25/11/2024 | Private group led by Seven2 | Olifan | Bouches-Du-Rhône | Financial Services | * | 119283 |
| 15/10/2024 | Elisa Oyj | sedApta | Italy | Supply Chain Management (SCM) | *** | 119597 |
| 24/09/2024 | Private Group led by Dentressangle Capital | EDL | Bouches-Du-Rhône | Software as a Service (SAAS), Medical Software | * | 118422 |
| 18/09/2024 | Private group led by EMZ Partners and Bpifrance | Oderis Consulting | France | Audit & Accounting | ** | 118324 |
| 09/09/2024 | Theon International | Harder Digital Ingenieur-und Industriegesellschaft | Germany | Electronic Equipment, Optoelectronics | *** | 118144 |
| 05/09/2024 | Private groupe led by Cerea Partners | Isnard Transalcool | Alpes-Maritimes | Trucking, Logistics Services | * | 118071 |
| 05/09/2024 | Enerpac Tool Group | DTA The Smart Move | Spain | Special Purpose Vehicles & Equipment | ** | 118083 |
| 05/09/2024 | Spectris | Piezocryst Advanced Sensorics | Austria | Measurement & Test Equipment, Equipement for Test & Measuring | ** | 118100 |
| 03/09/2024 | Private group led by Argos Wityu, Crédit Mutuel Equity, UI Investissement | Routin | Savoie | Soft Drinks | * | 118054 |
| 20/08/2024 | R&S Group | Kyte Powertech | Ireland | Electrical Components & Equipments | *** | 118174 |
| 07/08/2024 | Vertex | ecosio | Austria | System Integration, Enterprise Content Management (ECM) | ** | 117870 |
| 29/07/2024 | Wolters Kluwer | Isabel Accountancy Business | Belgium | Accounting software, Banking software / payment system | ** | 118044 |
| 25/07/2024 | Private group led by IdiCo | Lore Finance | Hauts-De-Seine | Software as a Service (SAAS), Real Estate Software | *** | 118191 |
| 23/07/2024 | Private group led by Société Générale Capital Partenaires | ABCD International & SOBAC CLOISONS | Essonne | Doors & Windows Manufacturers, Finishes and Fittings (F&F) | ** | 117966 |
| 22/07/2024 | Assa Abloy | SkiData | Austria | Integrated software, Electronic Equipment (for corporates), Electronic Equipment | *** | 119096 |
| 19/07/2024 | Private group led by Ardian Expansion, BNP Paribas Développement | Diam International | Yvelines | Packaging & Containers, Marketing Services | * | 118782 |
| 18/07/2024 | Private group led by EMZ Partners, Bpifrance, Florac, Cerea Partners, Unigrains | LABELYS Group | Paris | Plastic Packaging Manufacturers | * | 117971 |
| 18/07/2024 | Merck KGaA | Unity Semiconductor (UnitySC) | Isère | Measurement & Test Equipment, Equipement for Test & Measuring | * | 118059 |
| 18/07/2024 | Private group led by Indigo | Delville Management | France | Interim Management | ** | 118304 |
| 17/07/2024 | Private group led by Geneo Capital Entrepreneur, Eximium, Bpifrance | Otego | Ain | Synthetic Fibers / Nonwoven fabrics | * | 118005 |
| 17/07/2024 | Private group led by Platina Partners | David & Davitec | Gironde | Finishes and Fittings (F&F), Insulation Work | ** | 118014 |
| 16/07/2024 | Private group led by PAI Partners, Bpifrance | Nutripure | Haute-Garonne | Food Complements | * | 118019 |
| 15/07/2024 | PSB Industries | Quadpack Industries | Spain | Glass Packaging Manufacturers, Paper Packaging Manufacturers, Plastic Packaging Manufacturers | *** | 118790 |
| 13/07/2024 | Private Group backed by Qualium Investissement | IMPC (Imagerie Médicale Paris Centre) | Paris | Medical Diagnostic Laboratory | * | 118432 |
| 09/07/2024 | Tikehau Capital Partners | CEBAT | Italy | Heavy / Civil Construction, Testing, Inspection and Certification services (TIC) | ** | 119488 |
| 03/07/2024 | Zehnder Group | Siber Zone | Spain | CleanTech - Air Quality, Heating Components & Equipments | ** | 117881 |
Argos Mid-Market Index Breakdown
Access restricted to "Epsilon Eurozone Data" subscribers.
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NB: This part includes the transaction multiples (median, LTM):
I- Breakdown per main industry sectors
- Energy, Raw Materials, and Chemicals
- Building - Construction
- Industrial Equipment
- Consumer Products
- Agro-food
- Healthcare - Pharma
- Wholesale - Retail
- Transport
- TMT (Technology, Media, Telecommunications)
- Business and Consumer Services
II- Breakdown per main Euro Zone countries
- Germany
- France
- Italy
- Spain - Portugal
- Benelux
Euro Zone Mid Market M&A Trends
Access restricted to "Epsilon Eurozone Data" subscribers.
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NB: This part includes the following data:
- Euro zone M&A mid market activity (volume & value)
- Share of foreign buyers within industrial buyers
- Breakdown of foreign buyers (Europe -non Euro zone, North America, Asia, RoW)
- Share of listed buyers within industrial buyers
Euro Zone Mid Market LBO Trends
Access restricted to "Epsilon Eurozone Data" subscribers.
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NB: This part includes the following data:
- Euro zone LBO mid market activity (volume & value)
- Euro zone LBO exit mid market activity (volume & value)
- Share of SBOs within LBO exits
Argos Mid Market Index - Methodology
The Argos Mid-Market Index measures the evolution of euro zone private mid market company valuations.
Carried out by Epsilon Research for Argos Soditic and published every quarter, it reflects median EV/EBITDA multiples, on a six-month rolling basis, of mid market M&A transactions in the euro zone.
The preparation of the Argos Mid-Market Index is based on a rigorous methodology and in-depth scrutiny of M&A transactions making up the sample :
- Choice of the relevant multiple: the EV/EBITDA multiple is the most suitable for a European index as it is not impacted by the target’s financial structure nor by its policies regarding depreciation and provisioning (which vary in time and between countries). It is also the closest readily available proxy for operating cash flow.
- Sample of M&A transactions analysed, using the following criteria :
- acquisition of a majority stake,
- target based in a euro zone country,
- mid market : equity value in the €15-500m range (€15-150m up to H1 2013; €15-500m from H2 2013 onwards),
- certain activities excluded (financial services, real estate, high-tech),
- availability of relevant target financial data.
- Information sources are those used by Epsilon Research to prepare analysis reports on transactions available in its EMAT database:
- Professional partner databases such as: CorpfinDeals (transactions), CompanyQuery (company accounts),
- Publicly available information: company accounts, press releases, annual reports (buyers / sellers), press articles, etc.
- Comprehensive analysis of each transaction identified: research covering all available information; verifying, cross-checking, restating financial data; analysis of target activity and of the context of the deal; calculating and analysing acquisition multiples; rating the reliability of multiples.
The Index in perspective:
Following its launch in December 2006, the Argos Mid-Market Index has become a leading reference for private transactions, used by private equity funds, M&A advisors, investment banks, and accountants.
The strict methodology followed guarantees that the index is rigorous, relevant, stable and transparent. The goal is to offer market professionals and company managers a reference tool for understanding the evolution of acquisition prices in private company transactions.
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The Index is only an indication of the evolution of private company prices. It is relevant in relative, not absolute, value. The Index was not designed as a business valuation tool and cannot be used directly to value a company. |
In partnership with
“The Argos Index® is an important benchmark for valuing unlisted European companies and is based on very reliable data", Éric de Montgolfier, CEO of Invest Europe (See his interview)
Index source of information:
EMAT - Epsilon Multiple Analysis Tool™
The Reference Source for Private Company Acquisition Multiples
