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Quarterly Edition, Q2 2018_____________________
> Detailed Data on Euro Zone Multiples
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Argos Mid-Market Index
Evolution of Euro Zone Mid-Market Private Company Prices - Quarterly Index carried out by Epsilon Research
The Index reached a record level in the 2nd quarter at 9.9x EBITDA
The Argos Mid-Market Index continues to grow in the second quarter, with an increase of 4.2% to 9.9x EBITDA, its highest level since 2004.
The increase is driven by the Lower Mid- Market (+4.3%), the multiples of the Upper Mid-Market have been stable since the first quarter of 2017 at the very high level of more than 10x EBITDA. Prices paid by private equity funds as well as trade buyers are at record levels.
M&A Mid-Market activity in the Eurozone in the 2nd quarter is in line with that of the 1st quarter (in volume as in value) and shows a fall over the first half of 10% in volume and 25% in value compared to the previous semester.
You can download the full study under "Data Publication" (left)
Next Index: Nov. 2018
Argos Mid Market Index - Sample Analysis
| H2 2014 | H1 2015 | H2 2015 | H1 2016 | H2 2016 | H1 2017 | H2 2017 | H1 2018 | ||||||||||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Sample Size | |||||||||||||||||||||||||||||
| # deals retained for the index | 108 | 98 | 100 | 92 | 104 | 85 | 89 | 92 | |||||||||||||||||||||
| Average Equity Value (€m) | 108.7 | 124.0 | 109.2 | 134.6 | 128.5 | 149.7 | 140.5 | 142.0 | |||||||||||||||||||||
| Average N-1 sales (€m) | 139.7 | 154.8 | 120.8 | 158.4 | 133.3 | 131.2 | 113.3 | 130.0 | |||||||||||||||||||||
| N-1 EBITDA margin | 13% | 16% | 15% | 14% | 12% | 15% | 14% | 13% | |||||||||||||||||||||
| N-1 EBIT margin | 9% | 11% | 10% | 9% | 9% | 8% | 12% | 8% | |||||||||||||||||||||
| Breakdown by size (equity value) | |||||||||||||||||||||||||||||
| [15-49] €m | 36% | 36% | 42% | 25% | 37% | 27% | 25% | 28% | |||||||||||||||||||||
| [50-99] €m | 22% | 21% | 29% | 29% | 15% | 18% | 18% | 21% | |||||||||||||||||||||
| [100-150] €m | 18% | 12% | 6% | 17% | 12% | 13% | 22% | 16% | |||||||||||||||||||||
| Breakdown by deal type | |||||||||||||||||||||||||||||
| Acquisition | 76% | 65% | 22% | 35% | 69% | 65% | 67% | 26% | |||||||||||||||||||||
| LBO | 24% | 35% | 78% | 65% | 31% | 35% | 33% | 74% | |||||||||||||||||||||
| Breakdown by country | |||||||||||||||||||||||||||||
| France | 18% | 30% | 25% | 34% | 28% | 35% | 28% | 32% | |||||||||||||||||||||
| Germany | 19% | 17% | 15% | 16% | 20% | 14% | 13% | 15% | |||||||||||||||||||||
| Italy | 21% | 23% | 24% | 26% | 13% | 15% | 19% | 14% | |||||||||||||||||||||
| Benelux | 21% | 14% | 17% | 4% | 13% | 12% | 11% | 13% | |||||||||||||||||||||
| Spain | 11% | 8% | 9% | 7% | 13% | 11% | 14% | 4% | |||||||||||||||||||||
| Other (euro zone) | 10% | 8% | 10% | 13% | 13% | 13% | 15% | 22% | |||||||||||||||||||||
| Breakdown by sector | |||||||||||||||||||||||||||||
| Energy and Raw Materials | 15% | 10% | 4% | 13% | 16% | 10% | 11% | 11% | |||||||||||||||||||||
| Building, Construction | 4% | 9% | 3% | 8% | 3% | 5% | 7% | 3% | |||||||||||||||||||||
| Industrial Equipment | 26% | 18% | 21% | 17% | 13% | 20% | 13% | 19% | |||||||||||||||||||||
| Consumer Products | 6% | 2% | 3% | 2% | 6% | 2% | 5% | 3% | |||||||||||||||||||||
| Agro-Food | 5% | 5% | 10% | 3% | 8% | 5% | 8% | 9% | |||||||||||||||||||||
| Healthcare-Pharmaceuticals | 13% | 8% | 12% | 9% | 8% | 13% | 6% | 4% | |||||||||||||||||||||
| Wholesale, Retail | 5% | 13% | 6% | 6% | 7% | 4% | 7% | 9% | |||||||||||||||||||||
| Transport | 8% | 8% | 11% | 11% | 8% | 9% | 3% | 11% | |||||||||||||||||||||
| TMT | 13% | 21% | 20% | 16% | 18% | 20% | 14% | 21% | |||||||||||||||||||||
| Business and Consumer Services | 5% | 6% | 10% | 15% | 13% | 12% | 26% | 10% | |||||||||||||||||||||
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
| Date | Acquirer | Target | Country | Industries | Valuation multiples | See details |
|---|---|---|---|---|---|---|
| 28/06/2018 | Private Group led by Certares, Africinvest and Bpifrance | Marietton Group | Auvergne | Travel & Tourism | ** | 90150 |
| 27/06/2018 | Private Group led by Intermediate Capital Group (ICG) | Etanco | Paris | Building Materials & Fixtures, Machining Operations | * | 90226 |
| 14/06/2018 | Interface | Nora Systems | Germany | Building Materials & Fixtures | ** | 89968 |
| 13/06/2018 | Twin Disc | Veth Propulsion | Netherlands | Industrial Machinery, Ship manufacturers & suppliers | *** | 89959 |
| 06/06/2018 | Private Group led by Eurazeo and Naxicap Partners | 2RH (Shark Helmets) | Bouches-Du-Rhône | Accessories (manufacture) | ** | 90340 |
| 01/06/2018 | Metair Investments | Tovarna Akumulatorskih Baterij (TAB) | Slovenia | Electrical Components & Equipments, CleanTech - Power Storage | ** | 89628 |
| 31/05/2018 | Huhtamaki | Cup Print Unlimited | Ireland | Paper Packaging Manufacturers | ** | 89532 |
| 30/05/2018 | Private Group led by Arkéa Capital Investment and Motion Equity Partners | Holweg Weber | Bas-Rhin | Processing and Packaging Machinery | * | 90334 |
| 25/05/2018 | Private Group led by Apax Partners | Expereo | Netherlands | IT Service Providers | * | 89554 |
| 25/05/2018 | Sumitomo Heavy Industries | Lafert | Italy | Electrical Components & Equipments | ** | 89604 |
| 24/05/2018 | Smurfit Kappa Group | Reparenco | Netherlands | Wood & Paper Reclycling | *** | 89511 |
| 22/05/2018 | Pandora | Pandora Network in Ireland | Ireland | Jewellery & Watches (retail) | * | 89544 |
| 21/05/2018 | Pacific Industrial | Schrader Valves Business of Sensata Technologies | Netherlands | Pumps & PVF | *** | 89539 |
| 16/05/2018 | Volex | Silcotec Europe | Ireland | Cables & Wires Manufacturers | * | 89334 |
| 09/05/2018 | Adesto Technologies Corporation | S3 Semiconductors | Ireland | Semiconductors | ** | 89251 |
| 07/05/2018 | Delta Galil Industries | Eminence | Gard | Lingerie | * | 89749 |
| 04/05/2018 | Lantmannen Agro | Cattle Feed Business of Raisio | Finland | Animal Feed, Horticulture | *** | 89506 |
| 03/05/2018 | Private Group Led by IK Investment Partners | Mademoiselle Desserts (Formerly Eurpéenne des Desserts) | Yvelines | Bakery Products | * | 89516 |
| 03/05/2018 | Zhejiang Semir Garment | Sofiza (Kidiliz) | Paris | Children Clothing | * | 89526 |
| 03/05/2018 | Midsona | Davert | Germany | Bakery Products, Confectionery | *** | 89220 |
| 24/04/2018 | CS Communication & Systemes | Groupe Novidy's | Yvelines | IT Consulting | *** | 89241 |
| 24/04/2018 | QinetiQ Group | EIS Aircraft Operations | Germany | Services to the Industrial Transportation Sector, Training | *** | 89158 |
| 24/04/2018 | Smyths Toys | Toys R Us - DACH region | Germany | Toys & Gifts (retail) | ** | 89839 |
| 23/04/2018 | IMA Industria Macchine Automatiche | TMC | Italy | Processing and Packaging Machinery | ** | 89320 |
| 20/04/2018 | Private Group Led by Axcel Management | Orion Diagnostica | Finland | Diagnostic Medical Equipment | * | 89193 |
| 11/04/2018 | Aperam | VDM Metals | Germany | Aluminium, Steel | *** | 89153 |
| 11/04/2018 | Private Group led by La Chapelle | NAF NAF | Seine-Saint-Denis | Womenswear | ** | 89503 |
| 02/04/2018 | Samvardhana Motherson Automotive Systems Group | Reydel Automotive Group | Netherlands | Interior Parts | ** | 89168 |
| 29/03/2018 | Private Group led by Core Equity | Id Verde (ex ISS Espaces Verts) | Hauts-De-Seine | Landscaping | * | 89382 |
| 29/03/2018 | Italmobiliare | L'Aromatika | Italy | Coffee Roasting & Distribution | ** | 89314 |
| 28/03/2018 | TUI | Destination Management Business of Hotelbeds Spain | Spain | Travel & Tourism | * | 89401 |
| 20/03/2018 | Iceland Seafood International ehf | Oceanpath Seafoods | Ireland | Farming & Fishing, Sea Food | ** | 88608 |
| 09/03/2018 | Private Group led by OpCapita | Sebeto | Italy | Restaurants & Bars | ** | 89805 |
| 06/03/2018 | Nippon Express | Traconf | Italy | Logistics Services | * | 89974 |
| 01/03/2018 | Fosun Industrial | Wolford | Austria | Lingerie, Fashion Clothing | *** | 89004 |
| 12/02/2018 | Fosun International | Lanvin | Paris | Fashion Clothing | * | 89962 |
| 25/01/2018 | Dechra Pharmaceuticals | AST Farma & Le Vet Beheer | Netherlands | Veterinary Pharmaceuticals | ** | 88864 |
| 19/01/2018 | Private Group led by TPG Capital | Trace Partners | Hauts-De-Seine | Audiovisual - Production & Distribution | * | 89390 |
| 04/01/2018 | Vignobles K | Chateau Bellefont Belcier | Gironde | Wine Production -Bordeaux | ** | 88374 |
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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> 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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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. |
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