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 Ed., Q2 2023_____________________
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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
Q2 2023: Argos Index® stabilised at 9.9x EBITDA
Paris (France) – 20 July 2023 – Argos Wityu, the independent European investment fund, and Epsilon Research, the online platform for the management of non-quoted M&A transactions, today published the Mid-market Argos Index® for the first quarter of 2023. 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.
Acquisition prices of European SMEs have stabilised at 9.9x EBITDA
“Acquisition prices for eurozone SMEs stabilised in the 2nd quarter of 2023, against a persistently weak macroeconomic background, after trending downwards since their peak two years ago. This came about because the market saw renewed interest from strategic buyers, whose acquisition prices began to rise. In addition, transaction prices were more concentrated than ever on the extremes, on the upside as well as on the downside”, said Louis Godron, Managing Partner at Argos Wityu.
Acquisition prices of unlisted European SMEs stabilised after several quarters of decline.
- In the 2nd quarter of 2023, the Argos Index® rose slightly and stabilised at 9.9x EBITDA. It lay below its average of 10.2x EBITDA over the last five years and was 1.7x EDITDA below its all-time high in the 2nd quarter of 2021.
- As in the 1st quarter, the market remained highly polarised. Although the spread between the upper mid-market and lower mid-market multiples narrowed by 3.6x EBITDA, it remained very high.
The index held up because prices paid by strategic buyers rose.
- Multiples paid by strategic buyers climbed back to 9.6x EBITDA for two reasons: listed stock markets have recovered since the start of 2023, and buyers are pursuing attractive growth opportunities aimed at transforming their business models.
- Multiples paid by investment funds continued their gradual decline, dipping 1% to 10.3x EBITDA, while the number of LBO transactions fell by 22% during the 1st half of 2023, compared with the previous six months, reflecting the continued rise in interest rates.
Record level of transactions at extreme multiples
- 48% of transactions took place at multiples < 7x or > 15x EBITDA, a record level.
- 22% of transactions were realised at multiples > 15x EBITDA, an increase compared with the five previous quarters, and 26% at multiples < 7x EBITDA.
Eurozone mid-market M&A activity has stabilised at a low level.
- Mid-market M&A activity in the eurozone declined by 30% in value and 15% in volume during the 1st half of 2023, compared with the previous six months, driven by the decline in the upper mid-market (€150-500m), which coincided with a decline in the worldwide M&A market.
- Nevertheless, activity stabilised this quarter (transactions up 2% in volume, 32% in value), underpinned by smaller transactions, which were more resistant and less volatile.
- The share of private equity funds continued to decline during the 2nd quarter, to less than 15% in volume and in value, an all-time low.
> You can download the press release under "Data Publication" (left)
Argos Mid Market Index - Sample Analysis
| H2 2019 | H1 2020 | H2 2020 | H1 2021 | H2 2021 | H1 2022 | H2 2022 | H1 2023 | ||||||||||||||||||||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Sample Size | |||||||||||||||||||||||||||||||||||||||
| # deals retained for the index | 101 | 60 | 70 | 87 | 92 | 107 | 112 | 101 | |||||||||||||||||||||||||||||||
| Average Equity Value (€m) | 123.4 | 117.7 | 143.6 | 165.0 | 133.9 | 109.6 | 142.5 | 119.7 | |||||||||||||||||||||||||||||||
| Average N-1 sales (€m) | 112.0 | 89.7 | 100.1 | 112.9 | 106.6 | 120.0 | 123.8 | 112.8 | |||||||||||||||||||||||||||||||
| N-1 EBITDA margin | 15% | 19% | 17% | 16% | 18% | 13% | 16% | 17% | |||||||||||||||||||||||||||||||
| N-1 EBIT margin | 12% | 10% | 14% | ||||||||||||||||||||||||||||||||||||
| Breakdown by size (equity value) | |||||||||||||||||||||||||||||||||||||||
| [15-49] €m | 37% | 35% | 29% | 23% | 35% | 32% | 31% | 32% | |||||||||||||||||||||||||||||||
| [50-99] €m | 27% | 25% | 16% | 15% | 22% | 31% | 25% | 24% | |||||||||||||||||||||||||||||||
| [100-150] €m | 6% | 13% | 20% | 14% | 10% | 12% | 14% | 16% | |||||||||||||||||||||||||||||||
| Breakdown by deal type | |||||||||||||||||||||||||||||||||||||||
| Acquisition | 73% | 65% | 66% | 60% | 66% | 74% | 61% | 68% | |||||||||||||||||||||||||||||||
| LBO | 27% | 35% | 34% | 40% | 34% | 26% | 39% | 32% | |||||||||||||||||||||||||||||||
| Breakdown by country | |||||||||||||||||||||||||||||||||||||||
| France | 46% | 48% | 33% | 48% | 37% | 30% | 46% | 35% | |||||||||||||||||||||||||||||||
| Germany | 14% | 17% | 20% | 12% | 13% | 17% | 9% | 13% | |||||||||||||||||||||||||||||||
| Italy | 10% | 8% | 9% | 7% | 13% | 18% | 14% | 14% | |||||||||||||||||||||||||||||||
| Benelux | 14% | 8% | 13% | 15% | 16% | 10% | 14% | 8% | |||||||||||||||||||||||||||||||
| Spain | 5% | 7% | 11% | 5% | 9% | 5% | 6% | 11% | |||||||||||||||||||||||||||||||
| Other (euro zone) | 11% | 12% | 14% | 13% | 12% | 20% | 11% | 19% | |||||||||||||||||||||||||||||||
| Breakdown by sector | |||||||||||||||||||||||||||||||||||||||
| Energy and Raw Materials | 11% | 9% | 7% | 6% | 5% | 6% | 7% | 9% | |||||||||||||||||||||||||||||||
| Building, Construction | 2% | 0% | 0% | 3% | 7% | 4% | 8% | 5% | |||||||||||||||||||||||||||||||
| Industrial Equipment | 11% | 4% | 8% | 11% | 14% | 14% | 17% | 16% | |||||||||||||||||||||||||||||||
| Consumer Products | 1% | 6% | 3% | 5% | 9% | 7% | 1% | 3% | |||||||||||||||||||||||||||||||
| Agro-Food | 10% | 4% | 1% | 8% | 2% | 4% | 6% | 4% | |||||||||||||||||||||||||||||||
| Healthcare-Pharmaceuticals | 8% | 12% | 27% | 18% | 11% | 5% | 11% | 10% | |||||||||||||||||||||||||||||||
| Wholesale, Retail | 8% | 4% | 4% | 3% | 7% | 4% | 6% | 4% | |||||||||||||||||||||||||||||||
| Transport | 6% | 6% | 3% | 5% | 3% | 6% | 7% | 5% | |||||||||||||||||||||||||||||||
| TMT | 29% | 39% | 38% | 27% | 28% | 34% | 21% | 28% | |||||||||||||||||||||||||||||||
| Business and Consumer Services | 14% | 16% | 9% | 14% | 14% | 16% | 16% | 16% | |||||||||||||||||||||||||||||||
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
| Date | Acquirer | Target | Country | Industries | Valuation multiples | See details |
|---|---|---|---|---|---|---|
| 15/06/2023 | Banijay Group | Balich Wonder Studio s.r.l. | Italy | Event Organiser | * | 112881 |
| 14/06/2023 | Private Group led by the Management | MTR Bâtiment (Méthodes et Travaux Bâtiment) | Seine-Et-Marne | Building Construction | ** | 112813 |
| 14/06/2023 | Albany International | Heimbach | Germany | Paper Industries, Synthetic Fibers / Nonwoven fabrics | *** | 112904 |
| 31/05/2023 | Private Group led by Argos Wityu | TKH France (CAE Groupe) | Essonne | Cables & Wires Manufacturers | ** | 112792 |
| 30/05/2023 | Rexel | Wasco | Netherlands | Distribution of Materials & Equipment for Buildings / Public Works, Heating Equipment (retail), Electrical Product (retail) | *** | 112799 |
| 30/05/2023 | Private Group Led by SGT German Private Equity | Elatec | Germany | Electronic Security Systems, Electronic Security Systems | ** | 112825 |
| 30/05/2023 | JCDecaux | Italian and Spanish businesses of Clear Channel Outdoor | Spain | Outdoor Advertising | *** | 112831 |
| 22/05/2023 | Åland Penningautomatförening | 888 Holdings Latvian activity | Latvia | Online Gaming, Gambling | * | 112806 |
| 16/05/2023 | Shandong Sinocera Functional Material Co | DEKEMA Dental-Keramikoefen | Germany | Medical Equipment | *** | 112784 |
| 16/05/2023 | White Bridge Investments S.p.A. | ReeVo S.p.A | Italy | IT Service Providers | * | 112962 |
| 09/05/2023 | JD Sports Fashion | Groupe Courir | Paris | Footwear (retail), Sportswear, Clothing Retail (multi-brands) | ** | 112633 |
| 28/04/2023 | PI Industries | Archimica | Italy | Specialty Chemicals, Laboratory Testing Services | ** | 112912 |
| 25/04/2023 | Columbus McKinnon | montratec | Germany | Industrial Machinery, Electronic Equipment (for corporates) | ** | 112526 |
| 24/04/2023 | Private Group backed by Vivalto Partners | Laboratoires Delbert | France | Pharmaceuticals, Biomedical Research Laboratory | * | 112600 |
| 24/04/2023 | CANCOM SE | K-Businesscom | Austria | IT Consulting & Services | ** | 112691 |
| 20/04/2023 | Volution Group | I-Vent | Slovakia | Heating Components & Equipments | *** | 112488 |
| 19/04/2023 | Koninklijke DSM | Adare Pharmaceuticals (Adare Biome) | Yvelines | Pharmaceuticals | *** | 112493 |
| 06/04/2023 | Magellan Partners | Adone Conseil | Paris | Business and Management Consultancy, IT Consulting | ** | 112886 |
| 28/03/2023 | Halma | FirePro Systems | Cyprus | Electronic Security Systems, Electronic Security Systems | *** | 112204 |
| 24/03/2023 | General de Alquiler de Maquinaria | Carretillas Mayor | Spain | Material Handling Equipment Rental Services | * | 112280 |
| 22/03/2023 | Credit Agricole Consumer Finance & Stellantis | ALD activities in Ireland, Norway and Portugal | Norway | Long-term Rental of Vehicles | * | 112553 |
| 21/03/2023 | Private group led by Mérieux Equity Partners & Siparex & Normandie Participations | Piercan | Calvados | Plastics Engineering | * | 112026 |
| 16/03/2023 | Private group led by Adagia Partners and Bpifrance | Adhetec | Hautes-Pyrénées | Plastics Engineering , Aircraft Parts Suppliers | ** | 111758 |
| 14/03/2023 | Private Group backed by Bpifrance, NewAlpha Verto Capital and BNP Paribas Development | Lessonia | Finistère | Personal Products | ** | 112641 |
| 14/03/2023 | Private Group led by B & Capital | Sports Solutions Makers (Spartner) | Rhône | Event Organiser | * | 112679 |
| 08/03/2023 | Meilleurtaux | Mid Finance | Belgium | Financial Services, Online financial services | * | 112275 |
| 28/02/2023 | International Tractors | Thaler | Germany | Agricultural & Construction Equipment | * | 112168 |
| 27/02/2023 | Targa Telematics | Viasat Group | Italy | Telecommunications equipment, Mobile & Wireless Telecom Services | * | 111765 |
| 20/02/2023 | Private Group led by Andera Partners | Sud Prévention Sécurité | Bouches-Du-Rhône | Training | * | 112674 |
| 17/02/2023 | Private group led by B & Capital | Neoptim Consulting | Hauts-De-Seine | Tax and Legal Consultancy | ** | 112896 |
| 16/02/2023 | Private group les by PAI Partners | La Compagnie des Desserts | Aude | Canned, Frozen and Cooked Food | * | 112059 |
| 15/02/2023 | Private Group backed by Parquest | Xelya | Hauts-De-Seine | Specialized Software, Software as a Service (SAAS), Enterprise Resource Planning (ERP) | ** | 112649 |
| 13/02/2023 | MACIF | Mondial Pare-Brise | France | Automotive Services | ** | 112249 |
| 09/02/2023 | Private Group backed by Azulis Capital | Wichard (Groupe Deck) | Puy-De-Dôme | Plastics Engineering , Ship manufacturers & suppliers | * | 112661 |
| 07/02/2023 | Private Group led by Andera Partners | NG Travel | Paris | Travel & Tourism, Online Travel Agencies | * | 112254 |
| 07/02/2023 | Richter Gedeon Vegyeszeti Gyar Nyrt | OC Distributors | Ireland | Pharmaceuticals | * | 112238 |
| 03/02/2023 | Crown Energy | SmarTee (Accyourate Group) | Italy | Medical Supplies, e-services (B2C) | ** | 112231 |
| 02/02/2023 | MACOM Technology Solutions | Ommic | Val-De-Marne | Semiconductors | ** | 112209 |
| 02/02/2023 | Investindustrial | Procon Pumps (Standex Ireland) | Ireland | Pumps & PVF | *** | 112214 |
| 02/02/2023 | Private Group led by HLD | Groupe Infodis | Val-D'Oise | IT Consulting, System Integration | ** | 112221 |
| 01/02/2023 | The Navigator Company | Gomà-Camps Consumer | Spain | Paper Industries | ** | 112239 |
| 31/01/2023 | TriMas | Aarts Packaging | Netherlands | Plastics Engineering , Plastic Packaging Manufacturers | *** | 111703 |
| 30/01/2023 | Private Group led by Naxicap Partners | Digisap Solutions (Acces SAP Digital) | France | Specialized Software, Software as a Service (SAAS), Enterprise Resource Planning (ERP) | *** | 112595 |
| 27/01/2023 | Private group led by Graham Partners | Taoglas Group | Ireland | Telecommunications equipment | * | 112007 |
| 24/01/2023 | Private Group led by Apax Partners | Porsolt | Mayenne | Biomedical Research Laboratory | ** | 111888 |
| 19/01/2023 | Exceet Group | Apex Nova | Germany | CleanTech - Renewable Energy | ** | 112172 |
| 12/01/2023 | Sofrilog | Transports N.J.S Faramia | Bouches-Du-Rhône | Temperature Controlled Transport | * | 111893 |
| 11/01/2023 | IRCA | Sweet Ingredients Portfolio of Kerry Group | Ireland | Bakery Products, Confectionery | ** | 111287 |
| 06/01/2023 | Autoneum Holding | Automorive business of Borgers | Germany | Interior Parts | ** | 112262 |
| 05/01/2023 | Private group led by Turenne Capital, IDIA Capital Investissement, BNP Paribas Développement, Sofilaro, Siparex MidCap | Groupe Comptoir Rhodanien | Drôme | Market Gardening | ** | 112122 |
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
