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., Q3 2022_____________________
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Argos Index® Mid-Market
Evolution of Euro Zone Mid-Market Private Company Prices - Quarterly Index carried out by Epsilon Research
Q3 2022: Stability of the Argos Index® at 10.0x EBITDA despite market turmoil
Paris (France) – 22 November 2022 – 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 third quarter of 2022. 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 remained stable at 10.0x EBITDA despite turbulent market conditions.
- In the third quarter of 2022, the Argos Index® remained stable at 10.0x EBITDA, i.e. the average of the last five years.
- The index’s stability nevertheless masked the spread between the multiples of the high end of the market (still >12x EBITDA) and those of the lower mid-market (down 0.8 points at 8.9x EBITDA).
- It also contrasted with the worldwide deterioration in geopolitical and financial factors (inflation, interest rates rising at an unprecedented pace, economies teetering on the edge of recession) and stock market turbulence.
Prices paid, both by strategic buyers and investment funds, were stable.
- Multiples paid by strategic buyers have been stable at 9.9x EBITDA since the fourth quarter of 2021 and have not been affected by the continued slide in equity markets.
- Those paid by investment funds have also been stable, at 10.7x EBITDA this quarter and remain higher than those paid by strategic buyers. This is because their investments are concentrated on larger, high-quality and therefore higher-valued companies. Funds continued to benefit from record-high amounts of capital looking for investment opportunities and from new financing methods, such as private debt.
The share of transactions at multiples > 15x EBITDA returned to its pre-Covid level.
- The share of transactions at multiples in excess of 15x EBITDA continued the decline that started in the first quarter of 2022 and returned to its pre-Covid level of 12% of analysed transactions.
- The share of transactions at multiples below 7x EBITDA represented 16% of the sample, in line with the average of the past five years.
Mid-market European M&A activity declined only slightly, despite the weak market context.
- This quarter, the lacklustre context had only a moderate impact on the eurozone’s mid-market M&A segment, in terms of both volume (-11%) and price (stable).
- This segment is showing more resilience than the overall M&A market, which declined 34% in value worldwide and 24% in Europe over the first nine months of 2022.
- The M&A market is receiving support from LBO transactions, whose share in the overall M&A market reached a record 23% this quarter.
> 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 | Q1 2022 | H1 2022 | Q3 2022 | ||||||||||||||||||||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Sample Size | |||||||||||||||||||||||||||||||||||||||
| # deals retained for the index | 101 | 60 | 70 | 87 | 92 | 100 | 107 | 104 | |||||||||||||||||||||||||||||||
| Average Equity Value (€m) | 123.4 | 117.7 | 143.6 | 165.0 | 133.9 | 117.6 | 109.6 | 143.4 | |||||||||||||||||||||||||||||||
| Average N-1 sales (€m) | 112.0 | 89.7 | 100.1 | 112.9 | 106.6 | 94.1 | 120.0 | 148.5 | |||||||||||||||||||||||||||||||
| N-1 EBITDA margin | 15% | 19% | 17% | 16% | 18% | 15% | 13% | 16% | |||||||||||||||||||||||||||||||
| N-1 EBIT margin | 12% | 10% | 11% | ||||||||||||||||||||||||||||||||||||
| Breakdown by size (equity value) | |||||||||||||||||||||||||||||||||||||||
| [15-49] €m | 37% | 35% | 29% | 23% | 35% | 33% | 32% | 29% | |||||||||||||||||||||||||||||||
| [50-99] €m | 27% | 25% | 16% | 15% | 22% | 30% | 31% | 21% | |||||||||||||||||||||||||||||||
| [100-150] €m | 6% | 13% | 20% | 14% | 10% | 10% | 12% | 16% | |||||||||||||||||||||||||||||||
| Breakdown by deal type | |||||||||||||||||||||||||||||||||||||||
| Acquisition | 73% | 65% | 66% | 60% | 66% | 74% | 74% | 78% | |||||||||||||||||||||||||||||||
| LBO | 27% | 35% | 34% | 40% | 34% | 26% | 26% | 22% | |||||||||||||||||||||||||||||||
| Breakdown by country | |||||||||||||||||||||||||||||||||||||||
| France | 46% | 48% | 33% | 48% | 37% | 30% | 30% | 32% | |||||||||||||||||||||||||||||||
| Germany | 14% | 17% | 20% | 12% | 13% | 20% | 17% | 15% | |||||||||||||||||||||||||||||||
| Italy | 10% | 8% | 9% | 7% | 13% | 11% | 18% | 14% | |||||||||||||||||||||||||||||||
| Benelux | 14% | 8% | 13% | 15% | 16% | 16% | 10% | 14% | |||||||||||||||||||||||||||||||
| Spain | 5% | 7% | 11% | 5% | 9% | 6% | 5% | 6% | |||||||||||||||||||||||||||||||
| Other (euro zone) | 11% | 12% | 14% | 13% | 12% | 17% | 20% | 19% | |||||||||||||||||||||||||||||||
| Breakdown by sector | |||||||||||||||||||||||||||||||||||||||
| Energy and Raw Materials | 11% | 9% | 7% | 6% | 5% | 3% | 6% | 7% | |||||||||||||||||||||||||||||||
| Building, Construction | 2% | 0% | 0% | 3% | 7% | 5% | 4% | 6% | |||||||||||||||||||||||||||||||
| Industrial Equipment | 11% | 4% | 8% | 11% | 14% | 18% | 14% | 17% | |||||||||||||||||||||||||||||||
| Consumer Products | 1% | 6% | 3% | 5% | 9% | 7% | 7% | 4% | |||||||||||||||||||||||||||||||
| Agro-Food | 10% | 4% | 1% | 8% | 2% | 4% | 4% | 2% | |||||||||||||||||||||||||||||||
| Healthcare-Pharmaceuticals | 8% | 12% | 27% | 18% | 11% | 8% | 5% | 10% | |||||||||||||||||||||||||||||||
| Wholesale, Retail | 8% | 4% | 4% | 3% | 7% | 2% | 4% | 5% | |||||||||||||||||||||||||||||||
| Transport | 6% | 6% | 3% | 5% | 3% | 7% | 6% | 7% | |||||||||||||||||||||||||||||||
| TMT | 29% | 39% | 38% | 27% | 28% | 32% | 34% | 30% | |||||||||||||||||||||||||||||||
| Business and Consumer Services | 14% | 16% | 9% | 14% | 14% | 14% | 16% | 12% | |||||||||||||||||||||||||||||||
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 - Q1 2022 - H1 2022 - Q3 2022
| Date | Acquirer | Target | Country | Industries | Valuation multiples | See details |
|---|---|---|---|---|---|---|
| 14/09/2022 | Private Group led by Abénex Croissance | Ipssi | Paris | Schools | ** | 110221 |
| 08/09/2022 | DCC | Medi-Globe Technologies | Germany | Medical Supplies | ** | 109928 |
| 06/09/2022 | ADDvise Group | CliniChain | Netherlands | Medical Equipment | ** | 109947 |
| 19/08/2022 | DigitalOcean | Cloudways | Malta | IT Service Providers, Software as a Service (SAAS) | ** | 110031 |
| 16/08/2022 | Mondi | Duino Mill | Italy | Paper Packaging Manufacturers | * | 110018 |
| 11/08/2022 | Qt Group Oyj | Axivion | Germany | Security Software | ** | 109820 |
| 10/08/2022 | Coats Group | Rhenoflex | Germany | Footwear (manufacture) | *** | 109469 |
| 08/08/2022 | Azenta | B Medical Systems | Luxembourg | Medical Equipment | *** | 109985 |
| 04/08/2022 | Renold | Industrias YUK | Spain | Industrial Components, Drivetrain | *** | 109418 |
| 30/07/2022 | Dermapharm Holding | Arkopharma | France | Food Complements | * | 109562 |
| 28/07/2022 | Private Group led by Albarest | Soprauvergne/Distrifrais (Patifrais) | Allier | Bakery Products, Canned, Frozen and Cooked Food, Delicatessen | ** | 109934 |
| 26/07/2022 | Heico | Exxelia International | Paris | Semiconductors | * | 109388 |
| 26/07/2022 | Private Group led by One Equity Partners | Clayens | Rhône | Plastics Engineering | * | 109400 |
| 25/07/2022 | ZINQ France and Sofigalva | France Galva | France | Painting & Coatings | ** | 110041 |
| 22/07/2022 | Azkoyen | Ascaso Factory | Spain | Cooking Equipment for Professionals | ** | 109527 |
| 22/07/2022 | Mercer International | HIT Holzindustrie Torgau | Germany | Wood & Paper Industries | *** | 109544 |
| 20/07/2022 | Hillenbrand | Linxis Group | Loire-Atlantique | Industrial Machinery for the Food Processing Industry | ** | 109379 |
| 18/07/2022 | ASM International | LPE | Italy | Industrial Machinery, Semiconductors | * | 109520 |
| 12/07/2022 | Thales | OneWelcome | Netherlands | Software as a Service (SAAS), Security Software | *** | 109455 |
| 05/07/2022 | Private Group led by Qualium Investissement | Amexio | Hauts-De-Seine | System Integration, Enterprise Content Management (ECM) | * | 109875 |
| 04/07/2022 | Spirax-Sarco Engineering | Vulcanic | Seine-Saint-Denis | Heating Components & Equipments | *** | 109292 |
| 03/07/2022 | Private Group led by Adagia | Minlay | Paris | Medical Implants or Prostheses Manufacturers | * | 109372 |
| 30/06/2022 | Hillenbrand | Herbold Meckesheim | Germany | Industrial Machinery | ** | 109076 |
| 23/06/2022 | Stelrad Group | DL Radiators | Italy | Heating Components & Equipments | *** | 108993 |
| 21/06/2022 | Matthews International | OLBRICH & R+S Automotive | Germany | CleanTech - Power Storage, Powertrain, Machine Tools | * | 110023 |
| 16/06/2022 | Applied Materials | Picosun Oy | Finland | Semiconductors | * | 109802 |
| 14/06/2022 | Grupa Pracuj | Softgarden e-recruiting | Germany | Online Recruitment, Human Resource Management (HRM) | ** | 108981 |
| 07/06/2022 | Sanoma | Pearson K12 Courseware Businesses in Italy and Germany | Italy | Book Publishing, Education / Learning software | *** | 108955 |
| 07/06/2022 | Azenta | Barkey | Germany | Medical Equipment | * | 110012 |
| 06/06/2022 | Cyient | Celfinet– Consultoria em Telecomunicações | Portugal | Telecom software | *** | 109030 |
| 30/05/2022 | IMI | Bahr Modultechnik Holding | Germany | Industrial Components | ** | 108775 |
| 24/05/2022 | Renewi | GMP Exploitatie (Paro) | Netherlands | Recycling, Waste Collection Services | *** | 108930 |
| 17/05/2022 | Clearfield | Nestor Cables | Finland | Telecommunications equipment, Cables & Wires Manufacturers | * | 108906 |
| 17/05/2022 | Thales | Maxive Cybersecurity | Portugal | IT Consulting, System Integration | *** | 109462 |
| 10/05/2022 | Davide Campari Milano | Picon | France | Distilled Spirits & Liqueurs | ** | 109081 |
| 09/05/2022 | Telefonica Tech | BE-terna | Austria | Management Software | ** | 108939 |
| 02/05/2022 | OBO backed by For Talents | Riou Glass | Calvados | Doors & Windows Manufacturers | *** | 109448 |
| 28/04/2022 | Daikin Industries | Duplomatic Motion Solutions | Italy | Pumps & PVF | * | 108920 |
| 27/04/2022 | Getinge | Fluoptics | Isère | Medical Equipment, Biotechnology | ** | 108896 |
| 26/04/2022 | Private Group led by IK Partners | Batisanté | Hauts-De-Seine | Industrial Cleaning, Fire Protection Services | * | 109009 |
| 25/04/2022 | Digital 9 Infrastructure | Ficolo Oy | Finland | IT Service Providers | ** | 108890 |
| 19/04/2022 | PTC | Intland Software | Germany | Software as a Service (SAAS), Product Lifecycle Management (PLM) | * | 108914 |
| 13/04/2022 | Private Group led by Qualium Investissement | Recocash | Yvelines | Debt Collection Services | ** | 109037 |
| 10/04/2022 | OpenWeb | Adyoulike | Hauts-De-Seine | Social Media Marketing | ** | 109001 |
| 08/04/2022 | Sonos | Mayht (now Sonos Mighty) | Netherlands | Electronic Office Equipement and Computer Hardware (for home) | * | 108876 |
| 08/04/2022 | CMA-CGM | Gefco (Groupages Express de Franche-Comté) | Hauts-De-Seine | Railroads, Trucking, Logistics Services | * | 109064 |
| 07/04/2022 | AssuredPartners | Gallivan Murphy Insurance Brokers (GMIB.ie) | Ireland | Insurance Brokerage | ** | 108969 |
| 05/04/2022 | Digital 9 Infrastructure | Leeson Telecom (Host Ireland) | Ireland | Cable / Fixe Line Telecom, Telecom services for corporates | *** | 108869 |
| 05/04/2022 | Allfunds Group | Web Financial Group (WebFG) | Spain | Financial Markets software, Software as a Service (SAAS) | *** | 108802 |
| 04/04/2022 | Claranova SE | pdfforge | Germany | Software as a Service (SAAS), Enterprise Content Management (ECM) | ** | 108862 |
Argos Mid-Market Index Breakdown
Access restricted to "Epsilon Eurozone Data" subscribers.
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> If not, please click here for additional information
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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> If not, please click here for additional information
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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> If not, please click here for additional information
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
