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
> Download the Index
Quarterly Edition, Q2 2020_____________________
> See the Index in 5 additional languages:
_____________________
> Detailed Data on Euro Zone Multiples
_____________________
> Access underlying EMAT Reports
- c.100 M&A deal Reports per Index
- See example of Deal Report
- Buy / Subscribe
Argos Index® mid-market
Evolution of Euro Zone Mid-Market Private Company Prices - Quarterly Index carried out by Epsilon Research
The Argos Index® stabilised at 9.2x EBITDA against a background of low transaction volumes
Paris (France) – 23 July 2020 – Argos Wityu, an independent European investment fund, and Epson Research, the online platform for the management of unlisted M&A transactions, today published the Argos Mid-market Index® for the first quarter of 2020. 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.
Main conclusions:
- The Argos Index® stabilised at 9.2x EBITDA against a background of low transaction volumes.
- The volume of M&A activity declined sharply in the second quarter, by 40% in volume and 60% in value terms compared with the first quarter of 2020 and the second quarter of 2019.
- The multiples paid by investment funds (9.3x) and strategic buyers (8.9x) converged.
-
The percentage of high-multiple transactions is stabilising
-
The spread between the multiples of listed companies and the transaction multiples paid by strategic buyers narrowed
- Germany set a new record for market share of mid-cap M&A transactions in the eurozone.
> You can download the full study under "Data Publication" (left)
Argos Mid Market Index - Sample Analysis
| H2 2016 | H1 2017 | H2 2017 | H1 2018 | H2 2018 | H1 2019 | H2 2019 | H1 2020 | ||||||||||||||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Sample Size | |||||||||||||||||||||||||||||||||
| # deals retained for the index | 104 | 85 | 89 | 92 | 105 | 100 | 101 | 60 | |||||||||||||||||||||||||
| Average Equity Value (€m) | 128.5 | 149.7 | 140.5 | 142.0 | 115.7 | 112.6 | 123.4 | 117.7 | |||||||||||||||||||||||||
| Average N-1 sales (€m) | 133.3 | 131.2 | 113.3 | 130.0 | 112.0 | 124.4 | 112.0 | 89.7 | |||||||||||||||||||||||||
| N-1 EBITDA margin | 12% | 15% | 14% | 13% | 15% | 13% | 15% | 19% | |||||||||||||||||||||||||
| N-1 EBIT margin | 9% | 8% | 12% | 8% | 8% | 9% | 12% | 10% | |||||||||||||||||||||||||
| Breakdown by size (equity value) | |||||||||||||||||||||||||||||||||
| [15-49] €m | 37% | 27% | 25% | 28% | 36% | 31% | 37% | 35% | |||||||||||||||||||||||||
| [50-99] €m | 15% | 18% | 18% | 21% | 20% | 24% | 27% | 25% | |||||||||||||||||||||||||
| [100-150] €m | 12% | 13% | 22% | 16% | 18% | 19% | 6% | 13% | |||||||||||||||||||||||||
| Breakdown by deal type | |||||||||||||||||||||||||||||||||
| Acquisition | 69% | 65% | 67% | 74% | 71% | 65% | 73% | 65% | |||||||||||||||||||||||||
| LBO | 31% | 35% | 33% | 26% | 29% | 35% | 27% | 35% | |||||||||||||||||||||||||
| Breakdown by country | |||||||||||||||||||||||||||||||||
| France | 28% | 35% | 28% | 32% | 34% | 49% | 46% | 48% | |||||||||||||||||||||||||
| Germany | 20% | 14% | 13% | 15% | 20% | 14% | 14% | 17% | |||||||||||||||||||||||||
| Italy | 13% | 15% | 19% | 14% | 15% | 13% | 10% | 8% | |||||||||||||||||||||||||
| Benelux | 13% | 12% | 11% | 13% | 15% | 10% | 14% | 8% | |||||||||||||||||||||||||
| Spain | 13% | 11% | 14% | 4% | 6% | 3% | 5% | 7% | |||||||||||||||||||||||||
| Other (euro zone) | 13% | 13% | 15% | 22% | 10% | 11% | 11% | 12% | |||||||||||||||||||||||||
| Breakdown by sector | |||||||||||||||||||||||||||||||||
| Energy and Raw Materials | 16% | 10% | 11% | 11% | 5% | 2% | 11% | 9% | |||||||||||||||||||||||||
| Building, Construction | 3% | 5% | 7% | 3% | 5% | 6% | 2% | 0% | |||||||||||||||||||||||||
| Industrial Equipment | 13% | 20% | 13% | 19% | 23% | 12% | 11% | 4% | |||||||||||||||||||||||||
| Consumer Products | 6% | 2% | 5% | 3% | 4% | 3% | 1% | 6% | |||||||||||||||||||||||||
| Agro-Food | 8% | 5% | 8% | 9% | 6% | 7% | 10% | 4% | |||||||||||||||||||||||||
| Healthcare-Pharmaceuticals | 8% | 13% | 6% | 4% | 8% | 12% | 8% | 12% | |||||||||||||||||||||||||
| Wholesale, Retail | 7% | 4% | 7% | 9% | 5% | 7% | 8% | 4% | |||||||||||||||||||||||||
| Transport | 8% | 9% | 3% | 11% | 7% | 7% | 6% | 6% | |||||||||||||||||||||||||
| TMT | 18% | 20% | 14% | 21% | 23% | 22% | 29% | 39% | |||||||||||||||||||||||||
| Business and Consumer Services | 13% | 12% | 26% | 10% | 14% | 22% | 14% | 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
| Date | Acquirer | Target | Country | Industries | Valuation multiples | See details |
|---|---|---|---|---|---|---|
| 30/06/2020 | S&T | Iskratel | Slovenia | Telecommunications equipment | ** | 101018 |
| 25/06/2020 | Novozymes | PrecisionBiotics Group | Ireland | Pharmaceuticals, Food Complements | ** | 101039 |
| 23/06/2020 | Private Group Led by Ergon Capital Partners | Telenco Networks | Isère | Telecommunications equipment | * | 100936 |
| 22/06/2020 | Mediawan | Lagardère Studios | Hauts-De-Seine | Audiovisual - Production & Distribution | * | 100918 |
| 19/06/2020 | Tztek Technology Co | MueTec Automatisierte Mikroskopie und Messtechnik | Germany | Optoelectronics, Measurement & Test Equipment | *** | 100960 |
| 18/06/2020 | Le Noble Age (LNA Santé) | Clinique Développement | Seine-Maritime | Clinics and hospitals | * | 100887 |
| 16/06/2020 | Bic | Djeep | Paris | Nondurable Household Products | * | 100805 |
| 15/06/2020 | HLD Partners | TSG Group (Tokheim Services Group) | Hauts-De-Seine | Electrical Components & Equipments, Industrial Components | * | 100758 |
| 05/06/2020 | Sdiptech | Oy HillTip | Finland | Special Purpose Vehicles & Equipment | ** | 100753 |
| 26/05/2020 | CM.com International | CX Co | Netherlands | Mobile Software, Artificial Intelligence (AI) | ** | 100683 |
| 05/05/2020 | Häfen und Güterverkehr Köln | Imperial Logistics European Shipping Business | Germany | Marine Transportation | ** | 101008 |
| 22/04/2020 | Private Group led by Kartesia Management | International Cookware (Pyrex) | Indre | Kitchen Equipment | * | 100693 |
| 21/04/2020 | Morningstar | Sustainalytics | Netherlands | Financial Services, Competitive Intelligence & Market Studies | * | 100726 |
| 10/04/2020 | Tokai Carbon Co | Carbone Savoie International | Savoie | Commodity Chemicals | ** | 100673 |
| 10/04/2020 | Private Group Led by Ambienta | Namirial | Italy | Security Software | * | 100979 |
| 09/04/2020 | Private Group Led by Investcorp Technology Partners | Avira | Germany | Security Software | ** | 100955 |
| 20/03/2020 | Shanghai Yuyuan Tourist Mart Co | Djula | Paris | Jewellery & Watches (retail), Jewelry Manufacturers | * | 98918 |
| 18/03/2020 | Biogroup-LCD SCM | Laborizon | Hauts-De-Seine | Medical Diagnostic Laboratory | * | 101055 |
| 05/03/2020 | Sage Automotive Interiors | Adient Automotive Fabrics Manufacturing Business | Ireland | Interior Parts | * | 98680 |
| 04/03/2020 | Align Technology | exocad Global | Germany | Medical Software | * | 98936 |
| 02/03/2020 | Private Group led by LBO France | Dominique Dutscher | Bas-Rhin | Medical Supplies | * | 98460 |
| 01/03/2020 | NCAB Group | Flatfield Multiprint International | Netherlands | Semiconductors | * | 98666 |
| 27/02/2020 | Private Group Led by Sparring Capital | Pure Trade Worldwide | Paris | Packaging & Containers | ** | 101062 |
| 25/02/2020 | Glory | Acrelec Group | Seine-Et-Marne | Electronic Equipment (for corporates), Electronic Equipment, Retail Software, Food Service Software | ** | 100764 |
| 24/02/2020 | Private Group led by Equistone Partners Europe | Accès Industrie | Lot-Et-Garonne | Construction Equipement Rental Services, Material Handling Equipment Rental Services | ** | 100664 |
| 20/02/2020 | Loomis | Automatia Pankkiautomaatit | Finland | Cash Transportation Services | ** | 98710 |
| 17/02/2020 | C'Pro Groupe | Koden | Rhône | IT Supply Chain Services, IT & Telecom Products (retail) | ** | 98928 |
| 12/02/2020 | Compañía Minera Autlán, SAB de CV | Cegasa Portable Energy (Cegasa EMD) | Spain | Utilities, Specialty Chemicals, CleanTech - Power Storage | * | 98760 |
| 11/02/2020 | Sanoma | Alma Media Kustannus Oy | Finland | Regional Press | *** | 98902 |
| 04/02/2020 | Private Group led by Azulis Capital | Talis Business School | Dordogne | Schools | * | 99011 |
| 30/01/2020 | Qorvo | Decawave | Ireland | Semiconductors | * | 98852 |
| 28/01/2020 | Private Group Led by BC Partners | Pasticceria Bindi | Italy | Bakery Products | * | 98538 |
| 23/01/2020 | Private Group led by IK Investment Partners | Groupe EDH | France | Schools | * | 100841 |
| 22/01/2020 | Circet Groupe | German Communication business of Eltel | Germany | Telecommunications equipment | * | 98409 |
| 21/01/2020 | Private Group led by HLD Europe | Exxelia International | Paris | Semiconductors | * | 98198 |
| 20/01/2020 | Retelit Digital Services | Brennercom | Italy | Cable / Fixe Line Telecom | *** | 98694 |
| 17/01/2020 | Private Group led by Omnes Capital | Opportunity | Paris | Software as a Service (SAAS), Customer Relationship Management (CRM) | * | 99020 |
| 16/01/2020 | Cornerstone OnDemand | Clustree | France | Human Resource Management (HRM) | * | 99076 |
| 15/01/2020 | Private group led by Alliance Entreprendre | Mineris Environnement | France | Recycling, Waste Collection Services | * | 98946 |
| 14/01/2020 | Heska | Scil animal care company | Germany | Veterinary Pharmaceuticals, Diagnostic Medical Equipment | * | 98989 |
| 09/01/2020 | Private Group led by Siparex | Batibig | Hauts-De-Seine | Property Damage Restoration Services | * | 98599 |
| 08/01/2020 | Securitas | Techco Security Espana | Spain | Security Services | ** | 98659 |
| 07/01/2020 | Sapiens International | Sum.cumo | Germany | Financial Software | * | 98737 |
| 07/01/2020 | Lightspeed POS | Gastrofix | Germany | Banking software / payment system, Software as a Service (SAAS), Retail Software | ** | 98753 |
| 06/01/2020 | Agihold France | Toupargel Groupe | Rhône | Food R&W | * | 100941 |
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.
|
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
