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., Q1 2025_____________________
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Argos Index® Mid-Market
Evolution of Euro Zone Mid-Market Private Company Prices - Quarterly Index carried out by Epsilon Research
Q1 2025: the Argos Index® down to 9.5x EBITDA against a backdrop of weaker M&A activity
Paris (France) – 15 May 2025 – The mid-market Argos Index® for the first quarter of 2025, published by Epsilon Research, the online platform for the management of unlisted M&A transactions, and Argos Wityu, the independent European investment fund, 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.
Growing uncertainty regarding the economic and trade policies of the US administration caused the recovery in the eurozone mid-market to stall, reduced M&A activity and increased market volatility. Despite lower borrowing costs, expectations of further ECB rate cuts, easier access to funding and inflation falling close to the 2% target, the decline in valuations for eurozone SMEs in the first quarter of 2025 reflects widespread concern, with optimistic forecasts now a thing of the past.
Acquisition multiples for unlisted European SMEs fell to 9.5x EBITDA in Q1.
- In the first quarter of 2025, the Argos Index® fell by 3% to 9.5x EBITDA. That decline ended the recovery in mid-market eurozone prices that had begun in 2024, and resulted from lower M&A activity during the quarter.
The Argos Index® was driven lower by both investment funds and strategic buyers across the whole mid-market.
- In the first quarter of 2025, multiples paid by investment funds were down 3% to 10.0x EBITDA. The decrease came against a backdrop in which private equity investment fell in 2024 for the first time in two decades , with funds under pressure to sell assets and return cash to their backers.
- Multiples paid by strategic buyers fell slightly to 9.2x EBITDA. Stockmarket volatility resulting from the threat of US tariffs made price negotiations more difficult. However, the impact remained limited because of the ongoing improvement in financial health and the interest shown by large corporations in making transformative acquisitions.
- Although the gap between multiples paid by investment funds and strategic buyers narrowed to 0.8x EBITDA during the quarter, it remained significant, in line with its average since 2021.
Ongoing decline in transactions taking place at extreme multiples.
- In the first quarter of 2025, 32% of transactions took place at extreme multiples, i.e. less than 7x or more than 15x EBITDA, which is the smallest proportion since Covid. The terms of M&A deals started to return to normal in 2024, despite the recent economic turbulence.
- Transactions at multiples of less than 7x EBITDA accounted for 23% of the transactions analyzed, slightly higher than in the previous quarter and emphasizing the downward pressure on prices.
- The proportion of transactions at multiples of more than 15x EBITDA fell to 9%.
Sharp fall in mid-market M&A activity.
- Mid-market M&A activity in the eurozone fell by 20% in volume terms and 35% in value terms compared with the fourth quarter of 2024.
- That trend was in line with the sharp decline in the global M&A market, where the number of transactions was the lowest in 10 years, falling by 30% relative to the first quarter of 2024 and 44% compared with the market peak in 2021.
> You can download the full study under "Data Publication" (left)
Argos Mid Market Index - Sample Analysis
| H2 2021 | H1 2022 | H2 2022 | H1 2023 | H2 2023 | H1 2024 | H2 2024 | Q1 2025 | ||||||||||||||||||||||||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Sample Size | |||||||||||||||||||||||||||||||||||||||||||
| # deals retained for the index | 92 | 107 | 112 | 101 | 109 | 99 | 108 | 100 | |||||||||||||||||||||||||||||||||||
| Average Equity Value (€m) | 133.9 | 109.6 | 142.5 | 119.7 | 112.5 | 116.4 | 132.8 | 133.0 | |||||||||||||||||||||||||||||||||||
| Average N-1 sales (€m) | 106.6 | 120.0 | 123.8 | 112.8 | 127.0 | 112.4 | 133.3 | 113.8 | |||||||||||||||||||||||||||||||||||
| N-1 EBITDA margin | 18% | 13% | 16% | 17% | 16% | 16% | 17% | 18% | |||||||||||||||||||||||||||||||||||
| N-1 EBIT margin | 14% | 11% | 10% | 11% | |||||||||||||||||||||||||||||||||||||||
| Breakdown by size (equity value) | |||||||||||||||||||||||||||||||||||||||||||
| [15-49] €m | 35% | 32% | 31% | 32% | 40% | 41% | 34% | 40% | |||||||||||||||||||||||||||||||||||
| [50-99] €m | 22% | 31% | 25% | 24% | 24% | 19% | 26% | 18% | |||||||||||||||||||||||||||||||||||
| [100-150] €m | 10% | 12% | 14% | 16% | 9% | 14% | 11% | 9% | |||||||||||||||||||||||||||||||||||
| Breakdown by deal type | |||||||||||||||||||||||||||||||||||||||||||
| Acquisition | 66% | 74% | 61% | 68% | 77% | 60% | 60% | 64% | |||||||||||||||||||||||||||||||||||
| LBO | 34% | 26% | 39% | 32% | 23% | 40% | 40% | 36% | |||||||||||||||||||||||||||||||||||
| Breakdown by country | |||||||||||||||||||||||||||||||||||||||||||
| France | 37% | 30% | 46% | 35% | 30% | 51% | 33% | 33% | |||||||||||||||||||||||||||||||||||
| Germany | 13% | 17% | 9% | 13% | 19% | 10% | 12% | 11% | |||||||||||||||||||||||||||||||||||
| Italy | 13% | 18% | 14% | 14% | 18% | 15% | 19% | 19% | |||||||||||||||||||||||||||||||||||
| Benelux | 16% | 10% | 14% | 8% | 7% | 8% | 8% | 6% | |||||||||||||||||||||||||||||||||||
| Spain | 9% | 5% | 6% | 11% | 10% | 3% | 9% | 8% | |||||||||||||||||||||||||||||||||||
| Other (euro zone) | 12% | 20% | 11% | 19% | 16% | 13% | 19% | 23% | |||||||||||||||||||||||||||||||||||
| Breakdown by sector | |||||||||||||||||||||||||||||||||||||||||||
| Energy and Raw Materials | 5% | 6% | 7% | 9% | 8% | 7% | 5% | 6% | |||||||||||||||||||||||||||||||||||
| Building, Construction | 7% | 4% | 8% | 5% | 9% | 3% | 11% | 4% | |||||||||||||||||||||||||||||||||||
| Industrial Equipment | 14% | 14% | 17% | 16% | 20% | 20% | 27% | 18% | |||||||||||||||||||||||||||||||||||
| Consumer Products | 9% | 7% | 1% | 3% | 4% | 7% | 2% | 2% | |||||||||||||||||||||||||||||||||||
| Agro-Food | 2% | 4% | 6% | 4% | 3% | 6% | 4% | 6% | |||||||||||||||||||||||||||||||||||
| Healthcare-Pharmaceuticals | 11% | 5% | 11% | 10% | 7% | 10% | 8% | 12% | |||||||||||||||||||||||||||||||||||
| Wholesale, Retail | 7% | 4% | 6% | 4% | 3% | 5% | 7% | 5% | |||||||||||||||||||||||||||||||||||
| Transport | 3% | 6% | 7% | 5% | 4% | 5% | 7% | 6% | |||||||||||||||||||||||||||||||||||
| TMT | 28% | 34% | 21% | 28% | 26% | 17% | 24% | 25% | |||||||||||||||||||||||||||||||||||
| Business and Consumer Services | 14% | 16% | 16% | 16% | 16% | 20% | 5% | 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 - H2 2023 - H1 2024 - H2 2024 - Q1 2025
| Date | Acquirer | Target | Country | Industries | Valuation multiples | See details |
|---|---|---|---|---|---|---|
| 25/03/2025 | Private group led by Capital Export | GROUPE AA (AA Opto-Electronic) | Essonne | Electronic Equipment, Optoelectronics | * | 120623 |
| 11/03/2025 | Private group led by Capital Export, CELDA Mezzanine | Symétrie | Gard | Measurement & Test Equipment, Equipement for Test & Measuring | ** | 120634 |
| 11/03/2025 | Private group led by Charterhouse Capital Partners, Chequers Capital | ESTYA (Société d'Etudes et de Réalisation d'Installations de Sécurité) | Val-De-Marne | Security Services | * | 120669 |
| 17/02/2025 | Private group led by PolEquity | Belacom | Hauts-De-Seine | IT Supply Chain Services, Digital Marketing Agencies | ** | 120731 |
| 06/02/2025 | Private group led by LBO France, CAPELIA | Entreprise Redonnaise d’Electricité (E.R.E.) | Morbihan | Electrical Components & Equipments | * | 120683 |
| 06/02/2025 | Pivate Group led by Montagu | IGEFI Group (Multifonds) | Luxembourg | Accounting software, Financial Markets software, Software as a Service (SAAS) | ** | 120328 |
| 04/02/2025 | Fagron | Guinama | Spain | Pharmaceuticals | ** | 120373 |
| 30/01/2025 | Private group led by Sparring Opportunities, CELDA Capital Développement | CAN Croissance | Drôme | Construction Finishings | ** | 120708 |
| 28/01/2025 | Private group led by Arkea Capital | Alliance des Energies | Rhône | Health, Safety, and Environmental Consulting | ** | 120353 |
| 24/01/2025 | Private group led by Siparex Entrepreneurs, UI Investissement | Laboratoire Polidis | Hauts-De-Seine | Pharmaceuticals, Food Complements | * | 120574 |
| 16/01/2025 | discoverIE Group | Burster | Germany | Measurement & Test Equipment, Equipement for Test & Measuring | * | 120319 |
| 14/01/2025 | Gamma Communications | SF Technologies (STARFACE) | Germany | IT Service Providers, Telecom software | *** | 120337 |
| 23/12/2024 | Private Group led by Andera Acto | Centre Azuréen de Cancérologie (CAC) | Alpes-Maritimes | Clinics and hospitals | * | 120397 |
| 23/12/2024 | Private Group backed by CDP Equity and Trilantic Capital Partners | Diagram (IBF Servizi) | Italy | Specialized Software, Software as a Service (SAAS) | * | 120440 |
| 19/12/2024 | Private group led by TowerBrook Capital Partners | Rydge Conseil | Hauts-De-Seine | Audit & Accounting | * | 120113 |
| 17/12/2024 | Private group led by Weinberg Capital Partners, UI Investissement | Chesneau-Serret (Precision Polishing Measuring Aerospace - PPMA) | Paris | Machining Operations, Aircraft Parts Suppliers | ** | 120871 |
| 25/11/2024 | Private group led by Seven2 | Olifan | Bouches-Du-Rhône | Financial Services | * | 119283 |
| 15/11/2024 | Halma | Lamidey Noury | Essonne | Medical Equipment | ** | 119993 |
| 13/11/2024 | MilDef Group | roda Computer | Germany | Telecommunications equipment, Electronic Security Systems, Electronic Security Systems | *** | 120034 |
| 12/11/2024 | Private group led by BNP Paribas Développement et Bpifrance | Henco & G3 Concepts | France | Cooking Equipment for Professionals | * | 120030 |
| 28/10/2024 | Private group led by ETF Partners | Hubcycle | Vaucluse | Recycling | ** | 119867 |
| 15/10/2024 | Elisa Oyj | sedApta | Italy | Supply Chain Management (SCM) | *** | 119597 |
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
