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., Q4 2022_____________________
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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
Q4 2022: Limited decrease of the Argos Index®, now below 10.0x EBITDA
Paris (France) – 9 February 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 fourth 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.
The Argos Index® has started to decline in Q4 at 9.9x EBITDA: it is now below 10x for the first time since Q2 2020. Multiples paid by both private equity funds and strategic buyers have shown a limited erosion.
This looks surprising in a quicky deteriorating macroeconomic environment: as inflation spiralled out of control due to lockdowns and the Russia-Ukraine war, central banks have increased interest rates, which resulted in a correction in public markets – that however bounced back in Q4. The expected fall of multiples has yet to materialize. As the M&A market cycle reverses, the gap between sellers’ and buyers’ price expectations takes time to narrow. But the process seems to have started, as the most recent deals of the Index sample have lower multiples.
Main Conclusions:
- Limited decrease of the Argos Index®, now below 10.0x EBITDA
- Prices paid by private equity funds and strategic buyers have started to drop.
- Transactions at multiples > 15x back to pre-Covid levels
- Mid-market M&A activity fall in value, driven by the upper market, but is stable in volume
> 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 | Q3 2022 | H2 2022 | ||||||||||||||||||||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Sample Size | |||||||||||||||||||||||||||||||||||||||
| # deals retained for the index | 101 | 60 | 70 | 87 | 92 | 107 | 104 | 112 | |||||||||||||||||||||||||||||||
| Average Equity Value (€m) | 123.4 | 117.7 | 143.6 | 165.0 | 133.9 | 109.6 | 143.4 | 142.5 | |||||||||||||||||||||||||||||||
| Average N-1 sales (€m) | 112.0 | 89.7 | 100.1 | 112.9 | 106.6 | 120.0 | 148.5 | 123.8 | |||||||||||||||||||||||||||||||
| N-1 EBITDA margin | 15% | 19% | 17% | 16% | 18% | 13% | 16% | 16% | |||||||||||||||||||||||||||||||
| N-1 EBIT margin | 12% | 10% | 11% | ||||||||||||||||||||||||||||||||||||
| Breakdown by size (equity value) | |||||||||||||||||||||||||||||||||||||||
| [15-49] €m | 37% | 35% | 29% | 23% | 35% | 32% | 29% | 31% | |||||||||||||||||||||||||||||||
| [50-99] €m | 27% | 25% | 16% | 15% | 22% | 31% | 21% | 25% | |||||||||||||||||||||||||||||||
| [100-150] €m | 6% | 13% | 20% | 14% | 10% | 12% | 16% | 14% | |||||||||||||||||||||||||||||||
| Breakdown by deal type | |||||||||||||||||||||||||||||||||||||||
| Acquisition | 73% | 65% | 66% | 60% | 66% | 74% | 78% | 61% | |||||||||||||||||||||||||||||||
| LBO | 27% | 35% | 34% | 40% | 34% | 26% | 22% | 39% | |||||||||||||||||||||||||||||||
| Breakdown by country | |||||||||||||||||||||||||||||||||||||||
| France | 46% | 48% | 33% | 48% | 37% | 30% | 32% | 46% | |||||||||||||||||||||||||||||||
| Germany | 14% | 17% | 20% | 12% | 13% | 17% | 15% | 9% | |||||||||||||||||||||||||||||||
| Italy | 10% | 8% | 9% | 7% | 13% | 18% | 14% | 14% | |||||||||||||||||||||||||||||||
| Benelux | 14% | 8% | 13% | 15% | 16% | 10% | 14% | 14% | |||||||||||||||||||||||||||||||
| Spain | 5% | 7% | 11% | 5% | 9% | 5% | 6% | 6% | |||||||||||||||||||||||||||||||
| Other (euro zone) | 11% | 12% | 14% | 13% | 12% | 20% | 19% | 11% | |||||||||||||||||||||||||||||||
| Breakdown by sector | |||||||||||||||||||||||||||||||||||||||
| Energy and Raw Materials | 11% | 9% | 7% | 6% | 5% | 6% | 7% | 7% | |||||||||||||||||||||||||||||||
| Building, Construction | 2% | 0% | 0% | 3% | 7% | 4% | 6% | 8% | |||||||||||||||||||||||||||||||
| Industrial Equipment | 11% | 4% | 8% | 11% | 14% | 14% | 17% | 17% | |||||||||||||||||||||||||||||||
| Consumer Products | 1% | 6% | 3% | 5% | 9% | 7% | 4% | 1% | |||||||||||||||||||||||||||||||
| Agro-Food | 10% | 4% | 1% | 8% | 2% | 4% | 2% | 6% | |||||||||||||||||||||||||||||||
| Healthcare-Pharmaceuticals | 8% | 12% | 27% | 18% | 11% | 5% | 10% | 11% | |||||||||||||||||||||||||||||||
| Wholesale, Retail | 8% | 4% | 4% | 3% | 7% | 4% | 5% | 6% | |||||||||||||||||||||||||||||||
| Transport | 6% | 6% | 3% | 5% | 3% | 6% | 7% | 7% | |||||||||||||||||||||||||||||||
| TMT | 29% | 39% | 38% | 27% | 28% | 34% | 30% | 21% | |||||||||||||||||||||||||||||||
| Business and Consumer Services | 14% | 16% | 9% | 14% | 14% | 16% | 12% | 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 - Q3 2022 - H2 2022
| Date | Acquirer | Target | Country | Industries | Valuation multiples | See details |
|---|---|---|---|---|---|---|
| 23/12/2022 | Fluidra | MERANUS Gesellschaft fur Schwimmbad- und Freizeitausrustungen | Germany | Specialised R&W, Sporting Goods | ** | 111125 |
| 20/12/2022 | Fielmann | Medop | Ibervision Servicios Opticos | Elaboria | Spain | Specialised R&W, Medical Supplies, Eyewear (retail) | * | 111182 |
| 20/12/2022 | Elior Group | Derichebourg Multiservices | Paris | Facilities Management | *** | 110978 |
| 18/12/2022 | Salcef Group | Francesco Ventura Costruzioni Ferroviarie | Italy | Heavy / Civil Construction | ** | 111145 |
| 15/12/2022 | Gaming Innovation Group (GIG) | AskGamblers | Malta | Online Gaming | ** | 111166 |
| 13/12/2022 | AS Maag Grupp | HKScan - Baltic countries | Estonia | Meat processing | ** | 111173 |
| 02/12/2022 | Comer Industries | Benevelli Electric Powertrain Solutions | Sitem | Italy | Drivetrain | ** | 111194 |
| 25/11/2022 | Shandong Weifang Rainbow Chemical Co. | Exclusivas Sarabia | Spain | Fertilizers & Pesticides - Manufacturers | ** | 111189 |
| 23/11/2022 | Private Group led by Eurazeo | NeoXam | Paris | Financial Markets software | * | 110943 |
| 22/11/2022 | Italian Wine Brands | Barbanera | Italy | Wine Production - Italy | *** | 111140 |
| 21/11/2022 | UniPhar | BModesto | Netherlands | Drugs Retailers | ** | 110851 |
| 16/11/2022 | Eagle Eye Solutions Group | Untie Nots | Paris | e-Marketing, Software as a Service (SAAS), Marketing Software | *** | 110920 |
| 27/10/2022 | Camplify | PaulCamper | Germany | Online Classified Ads Providers, Peer to Peer | * | 110740 |
| 24/10/2022 | Mediahuis Ireland | Webzone (Carzone) | Ireland | Online Classified Ads Providers, e-Marketplace | *** | 110785 |
| 21/10/2022 | Private Group led by The Carlyle Group | Grupo Garnica Plywood | Spain | Building Materials & Fixtures | * | 110934 |
| 14/10/2022 | Apleona Ireland | Acacia Facilities | Ireland | Facilities Management | * | 110960 |
| 11/10/2022 | Refresco Group | Avandis Group | Netherlands | Soft Drinks, Glass Packaging Manufacturers, Metal Packaging Manufacturers | *** | 110399 |
| 10/10/2022 | Private group led by Jadel | Gagnepark | Rhône | Solar Service Provider, Heavy / Civil Construction | ** | 110767 |
| 07/10/2022 | Evergreen Healthcare | Castlebridge Manor Nursing Home | Ireland | Care Home | * | 111002 |
| 06/10/2022 | Private Group led by Geneo Capital Entrepreneur | i-run | Haute-Garonne | e-commerce (B2C), Sportswear | *** | 111008 |
| 06/10/2022 | Halma | Weetech | Germany | Equipement for Test & Measuring | *** | 110368 |
| 05/10/2022 | Arcadis | DPS Engineering (now Arcadis DPS Group) | Ireland | Engineering and Technology Consulting | *** | 110801 |
| 03/10/2022 | Redwire LLC | QinetiQ Space (now Redwire Space) | Belgium | Aircraft Parts Suppliers | ** | 110751 |
| 29/09/2022 | Clearwater Analytics | JUMP Technology | Hauts-De-Seine | Financial Markets software, Private & I-banking software | *** | 109966 |
| 29/09/2022 | Private Group led by Andera Partners | Senstronic | Bas-Rhin | Measurement & Test Equipment, Equipement for Test & Measuring | * | 110991 |
| 20/09/2022 | Private Group led by the Management | Groupe Pozeo | Yvelines | Other Business Services, Marketing Services | *** | 110965 |
| 20/09/2022 | Private Group led by EMZ Partners | Positive Group (Sarbacane Group) | Nord | Marketing Software | * | 110773 |
| 20/09/2022 | UniPhar | LXV Remedies Holdings (McCauley Pharmacy Group) | Ireland | Drugs Retailers | * | 110405 |
| 16/09/2022 | Private Group led by Axio Capital | Cemom (Compagnie Européenne de Machines Outil Moattil) | Seine-Saint-Denis | Doors & Windows Manufacturers, Metalwork | * | 110985 |
| 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 |
| 29/07/2022 | Private Group led by Motion Equity Partners | Tournaire | Alpes-Maritimes | Metal Packaging Manufacturers | * | 110378 |
| 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 |
| 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 |
Argos Mid-Market Index Breakdown
Access restricted to "Epsilon Eurozone Data" subscribers.
> If you are a subscriber, please login on the Epsilon Platform
> 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.
> If you are a subscriber, please login on the Epsilon Platform
> 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.
> If you are a subscriber, please login on the Epsilon Platform
> 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
