What do they think of the Index?
- Professor Reiner Braun, Technical University of Munich (March 2020)
- Éric de Montgolfier, CEO of Invest Europe (Dec. 2019)
Data Publication
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Quarterly Edition, Q3 2020_____________________
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> Detailed Data on Euro Zone Multiples
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Argos Index® mid-market
Evolution of Euro Zone Mid-Market Private Company Prices - Quarterly Index carried out by Epsilon Research
The Argos Index® rose to 10.1x EBITDA on Q3 2020
Paris (France) – 18 November 2020 – Argos Wityu, an independent European investment fund, and Epson Research, the online platform for the management of unlisted M&A transactions, today published the Argos Mid-market Index® for the 3rd quarter of 2020. This index, launched in 2006, tracks the valuations of eurozone private, mid-market companies in which a majority stake has been acquired during the last six months.
Main conclusions:
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The Argos Index® climbed back to 10.1x EBITDA, almost as high as it was prior to the Covid-19 crisis.
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The market was selective, remaining focused on high-quality acquisitions and on the healthcare and technology sectors. Half of the transactions referenced in the Argos Index® were in these two sectors.
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Transactions at multiples in excess of 20x virtually disappeared.
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M&A activity recovered somewhat, but in the first nine months of 2020, it was still 13% below that of the year-earlier period.
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Germany was the most active eurozone country in terms of SME acquisitions, followed by France and Benelux
> You can download the full study under "Data Publication" (left)
Argos Mid Market Index - Sample Analysis
| H1 2017 | H2 2017 | H1 2018 | H2 2018 | H1 2019 | H2 2019 | H1 2020 | Q3 2020 | |||||||||||||||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Sample Size | ||||||||||||||||||||||||||||||||||
| # deals retained for the index | 85 | 89 | 92 | 105 | 100 | 101 | 60 | 65 | ||||||||||||||||||||||||||
| Average Equity Value (€m) | 149.7 | 140.5 | 142.0 | 115.7 | 112.6 | 123.4 | 117.7 | 113.3 | ||||||||||||||||||||||||||
| Average N-1 sales (€m) | 131.2 | 113.3 | 130.0 | 112.0 | 124.4 | 112.0 | 89.7 | 105.4 | ||||||||||||||||||||||||||
| N-1 EBITDA margin | 15% | 14% | 13% | 15% | 13% | 15% | 19% | 17% | ||||||||||||||||||||||||||
| N-1 EBIT margin | 8% | 12% | 8% | 8% | 9% | 12% | 10% | 13% | ||||||||||||||||||||||||||
| Breakdown by size (equity value) | ||||||||||||||||||||||||||||||||||
| [15-49] €m | 27% | 25% | 28% | 36% | 31% | 37% | 35% | 29% | ||||||||||||||||||||||||||
| [50-99] €m | 18% | 18% | 21% | 20% | 24% | 27% | 25% | 20% | ||||||||||||||||||||||||||
| [100-150] €m | 13% | 22% | 16% | 18% | 19% | 6% | 13% | 25% | ||||||||||||||||||||||||||
| Breakdown by deal type | ||||||||||||||||||||||||||||||||||
| Acquisition | 65% | 67% | 74% | 71% | 65% | 73% | 65% | 63% | ||||||||||||||||||||||||||
| LBO | 35% | 33% | 26% | 29% | 35% | 27% | 35% | 37% | ||||||||||||||||||||||||||
| Breakdown by country | ||||||||||||||||||||||||||||||||||
| France | 35% | 28% | 32% | 34% | 49% | 46% | 48% | 40% | ||||||||||||||||||||||||||
| Germany | 14% | 13% | 15% | 20% | 14% | 14% | 17% | 17% | ||||||||||||||||||||||||||
| Italy | 15% | 19% | 14% | 15% | 13% | 10% | 8% | 17% | ||||||||||||||||||||||||||
| Benelux | 12% | 11% | 13% | 15% | 10% | 14% | 8% | 9% | ||||||||||||||||||||||||||
| Spain | 11% | 14% | 4% | 6% | 3% | 5% | 7% | 8% | ||||||||||||||||||||||||||
| Other (euro zone) | 13% | 15% | 22% | 10% | 11% | 11% | 12% | 9% | ||||||||||||||||||||||||||
| Breakdown by sector | ||||||||||||||||||||||||||||||||||
| Energy and Raw Materials | 10% | 11% | 11% | 5% | 2% | 11% | 9% | 7% | ||||||||||||||||||||||||||
| Building, Construction | 5% | 7% | 3% | 5% | 6% | 2% | 0% | 1% | ||||||||||||||||||||||||||
| Industrial Equipment | 20% | 13% | 19% | 23% | 12% | 11% | 4% | 13% | ||||||||||||||||||||||||||
| Consumer Products | 2% | 5% | 3% | 4% | 3% | 1% | 6% | 4% | ||||||||||||||||||||||||||
| Agro-Food | 5% | 8% | 9% | 6% | 7% | 10% | 4% | 6% | ||||||||||||||||||||||||||
| Healthcare-Pharmaceuticals | 13% | 6% | 4% | 8% | 12% | 8% | 12% | 17% | ||||||||||||||||||||||||||
| Wholesale, Retail | 4% | 7% | 9% | 5% | 7% | 8% | 4% | 3% | ||||||||||||||||||||||||||
| Transport | 9% | 3% | 11% | 7% | 7% | 6% | 6% | 7% | ||||||||||||||||||||||||||
| TMT | 20% | 14% | 21% | 23% | 22% | 29% | 39% | 34% | ||||||||||||||||||||||||||
| Business and Consumer Services | 12% | 26% | 10% | 14% | 22% | 14% | 16% | 8% | ||||||||||||||||||||||||||
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 - Q3 2020
| Date | Acquirer | Target | Country | Industries | Valuation multiples | See details |
|---|---|---|---|---|---|---|
| 30/09/2020 | Private Group led by Bridgepoint | SendinBlue | Paris | Software as a Service (SAAS), Marketing Software | * | 102241 |
| 23/09/2020 | Strix Italy | Laica | Italy | Kitchen Equipment | ** | 102031 |
| 22/09/2020 | Private Group led by Apax Partners | Odigo (formerly Prosodie) | France | Telecom software, VoIP Telephony Services, Software as a Service (SAAS), Customer Relationship Management (CRM) | ** | 102116 |
| 22/09/2020 | Chr Hansen | Jennewein Biotechnologie | Germany | Biotechnology, Food Complements | *** | 102159 |
| 18/09/2020 | Krause Holdings | Parma Calio 1913 | Italy | Sports team | * | 102291 |
| 04/09/2020 | Marel | TREIF Maschinenbau | Germany | Industrial Machinery for the Food Processing Industry | *** | 101603 |
| 27/08/2020 | Carrefour | SuperSol Spain | Spain | Diversified R&W | ** | 101547 |
| 24/08/2020 | Sulzer | Wilhelm Haselmeier | Germany | Medical Supplies | ** | 101555 |
| 21/08/2020 | Cryoport | CRYO International | Paris | Temperature Controlled Transport | ** | 101480 |
| 19/08/2020 | Cellink | Scienion | Germany | Medical Equipment | *** | 101495 |
| 18/08/2020 | Veolia Environnement | Osis (Suez RV Osis) | Hauts-De-Seine | Waste & Disposal Services, Industrial Cleaning | *** | 101560 |
| 17/08/2020 | Endava | Comtrade Digital Services | Ireland | IT Consulting & Services | * | 102335 |
| 12/08/2020 | TFL Ledertechnik | Lanxess Organic Leather Chemical Business | Germany | Specialty Chemicals | *** | 101502 |
| 03/08/2020 | Sonoco Products | Can Packaging | France | Paper Packaging Manufacturers, Processing and Packaging Machinery | ** | 101314 |
| 30/07/2020 | Private group led by HLD Europe | Microwave Vision | Essonne | Electronic Equipment (for corporates), Telecommunications equipment | *** | 101384 |
| 30/07/2020 | Private Group Led by Ardian | Finaxy Group | Paris | Insurance Brokerage | * | 101299 |
| 24/07/2020 | Creo Medical Group | Albyn Medical | Spain | Medical Supplies | ** | 101285 |
| 23/07/2020 | Amdocs | Openet Telecom | Ireland | Telecom infrastructure Softwares | * | 102322 |
| 23/07/2020 | Wipro | 4C Consulting | Belgium | IT Consulting, System Integration | * | 102236 |
| 23/07/2020 | Private Group Led by Eurazeo PME | EasyVista | Seine-Saint-Denis | Software as a Service (SAAS), Business Process Management (BPM) | *** | 101598 |
| 22/07/2020 | Private Group led by Montefiore Investment | Groupe Open | Paris | IT Consulting, System Integration | *** | 101518 |
| 22/07/2020 | Private Group led by Alliance Entreprendre | Ecoclean Services (VDFIN) | Yvelines | Industrial Cleaning | * | 102263 |
| 21/07/2020 | Private Group Led by AnaCap Financial Partners | Gestion Tributaria Territorial (GTT) | Spain | Financial Software | * | 101291 |
| 21/07/2020 | GSH Private Capital | Getronics | Netherlands | IT Outsourcing | * | 101570 |
| 20/07/2020 | SKIOLD | Rotecna | Spain | Industrial Machinery | * | 101305 |
| 15/07/2020 | Terumo | Quirem Medical | Netherlands | Biotechnology, Medical Software | * | 101365 |
| 15/07/2020 | Medtronic | Medicrea International | Rhône | Medical Implants or Prostheses Manufacturers | ** | 101328 |
| 15/07/2020 | Private Group Led by TowerBrook Capital Partners L.P. | Talan | Paris | IT Consulting | * | 101591 |
| 15/07/2020 | TeamViewer | Ubimax | Germany | Virtualization Software, Industrial Software | *** | 101156 |
| 10/07/2020 | Private Group led by Apax Partners Development | Snef Telecom | France | Telecom services for corporates, Mobile & Wireless Telecom Services | * | 101344 |
| 01/07/2020 | Gamma Communications | HFO | Germany | Telecom services for corporates | *** | 101050 |
| 30/06/2020 | S&T | Iskratel | Slovenia | Telecommunications equipment | ** | 101018 |
| 30/06/2020 | Private Group led by the Management | Cofigeo | France | Meat processing, Canned, Frozen and Cooked Food | * | 101310 |
| 25/06/2020 | Private Group Led by Cerea Partners | Groupe Axium | Loire | Plastic Packaging Manufacturers | *** | 102272 |
| 25/06/2020 | Private group led by Capza | Eurofeu Invest | Eure-Et-Loir | Industrial Machinery | ** | 102253 |
| 23/06/2020 | Private Group Led by Ergon Capital Partners | Telenco Networks | Isère | Telecommunications equipment | * | 100936 |
| 22/06/2020 | Mediawan | Lagardère Studios | Hauts-De-Seine | Audiovisual - Production & Distribution | * | 100918 |
| 19/06/2020 | Tztek Technology Co | MueTec Automatisierte Mikroskopie und Messtechnik | Germany | Optoelectronics, Measurement & Test Equipment | *** | 100960 |
| 18/06/2020 | Le Noble Age (LNA Santé) | Clinique Développement | Seine-Maritime | Clinics and hospitals | * | 100887 |
| 17/06/2020 | Private group led by Ixo Private Equity, Maelo Capital Investissement, BNP Paribas Développment, Crédit Agricole Sud Rhône-Alpe | Exsto | Drôme | Plastics Engineering | * | 102319 |
| 16/06/2020 | Bic | Djeep | Paris | Nondurable Household Products | * | 100805 |
| 15/06/2020 | HLD Partners | TSG Group (Tokheim Services Group) | Hauts-De-Seine | Electrical Components & Equipments, Industrial Components | * | 100758 |
| 05/06/2020 | Sdiptech | Oy HillTip | Finland | Special Purpose Vehicles & Equipment | ** | 100753 |
| 04/06/2020 | BBB Industries | Industrial Metalcaucho | Spain | Retail of Auto Parts | * | 102094 |
| 26/05/2020 | CM.com International | CX Co | Netherlands | Mobile Software, Artificial Intelligence (AI) | ** | 100683 |
| 05/05/2020 | Häfen und Güterverkehr Köln | Imperial Logistics European Shipping Business | Germany | Marine Transportation | ** | 101008 |
| 22/04/2020 | Private Group led by Kartesia Management | International Cookware (Pyrex) | Indre | Kitchen Equipment | * | 100693 |
| 21/04/2020 | Morningstar | Sustainalytics | Netherlands | Financial Services, Competitive Intelligence & Market Studies | * | 100726 |
| 20/04/2020 | Chr Hansen | HSO Health Care | Austria | Food Complements | *** | 101509 |
| 10/04/2020 | Tokai Carbon Co | Carbone Savoie International | Savoie | Commodity Chemicals | ** | 100673 |
| 10/04/2020 | Private Group Led by Ambienta | Namirial | Italy | Security Software | * | 100979 |
| 09/04/2020 | Private Group Led by Investcorp Technology Partners | Avira | Germany | Security Software | ** | 100955 |
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
