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., Q2 2024_____________________
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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 2024: Argos Index® declined slightly, to 8.9x EBITDA
Paris (France) – 22 May 2024 – 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 first quarter of 2023. 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.
In the first quarter of 2024, acquisition prices for unlisted, eurozone SMEs declined slightly, to 8.9x EBITDA. This decline was driven by the decrease in multiples paid by investment funds. Specifically, the proportion of transactions at less than 7x EBITDA rose to a record level, in a market where prices in the upper and lower segments of the mid-market are still converging. The economic environment is favourable. Inflation is declining sharply, and interest rates, although still high, are stabilising. The economy is still hindered, however, by geopolitical risks and delays in interest rates cuts anticipated by the financial markets.
Acquisition prices of unlisted, European SMEs declined slightly, to 8.9x EBITDA
- In the 1st quarter of 2024, the Argos Index® was down slightly, at 8.9x EBITDA, and has been declining since reaching a peak two and a half years ago, in the 2nd quarter of 2021. The index has reached its lowest level since 2017 and is near its 20-year historical average.
- The price decline was highlighted by the drop in multiples on the upper mid-market (down by 4x EBITDA since Q1 2023), which continued to converge with lower mid-market multiples.
Multiples paid by investment funds are pulling the index down
- Multiples paid by investment funds were down 3% this quarter to 9.1x EBITDA and moved closer to multiples paid by strategic buyers. Nevertheless, investment funds increased their market share and continued to use their record dry powder to acquire high-quality assets.
- Multiples paid by strategic buyers remained stable at 8.7x EBITDA, while equity markets continued to recover.
Record proportion of transactions below 7x EBITDA
- 47% of transactions took place at the extremes, i.e. at multiples < 7x or > 15x EBITDA, one of the highest levels since 2018.
- 34% of transactions took place at < 7x EBITDA, a record level, reflecting downward pressure on prices.
- The proportion of transactions at multiples > 15x EBITDA remained stable at a low level, with no multiples at 20x.
Mid-market eurozone M&A activity remained stable, following a limited decline in 2022/2023
- Eurozone M&A deal volume was stable and down 8% in value terms. The proportion of LBOs increased and represented 18% of M&A market transactions.
- Depending on economic conditions, mid-market M&A is less volatile than its worldwide large-cap counterpart, which is recovering and posted a limited decline in activity in 2022/2023.
> You can download the full study under "Data Publication" (left)
Argos Mid Market Index - Sample Analysis
| H2 2020 | H1 2021 | H2 2021 | H1 2022 | H2 2022 | H1 2023 | H2 2023 | Q1 2024 | ||||||||||||||||||||||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Sample Size | |||||||||||||||||||||||||||||||||||||||||
| # deals retained for the index | 70 | 87 | 92 | 107 | 112 | 101 | 109 | 110 | |||||||||||||||||||||||||||||||||
| Average Equity Value (€m) | 143.6 | 165.0 | 133.9 | 109.6 | 142.5 | 119.7 | 112.5 | 113.6 | |||||||||||||||||||||||||||||||||
| Average N-1 sales (€m) | 100.1 | 112.9 | 106.6 | 120.0 | 123.8 | 112.8 | 127.0 | 130.2 | |||||||||||||||||||||||||||||||||
| N-1 EBITDA margin | 17% | 16% | 18% | 13% | 16% | 17% | 16% | 15% | |||||||||||||||||||||||||||||||||
| N-1 EBIT margin | 14% | 11% | 8% | ||||||||||||||||||||||||||||||||||||||
| Breakdown by size (equity value) | |||||||||||||||||||||||||||||||||||||||||
| [15-49] €m | 29% | 23% | 35% | 32% | 31% | 32% | 40% | 41% | |||||||||||||||||||||||||||||||||
| [50-99] €m | 16% | 15% | 22% | 31% | 25% | 24% | 24% | 20% | |||||||||||||||||||||||||||||||||
| [100-150] €m | 20% | 14% | 10% | 12% | 14% | 16% | 9% | 14% | |||||||||||||||||||||||||||||||||
| Breakdown by deal type | |||||||||||||||||||||||||||||||||||||||||
| Acquisition | 66% | 60% | 66% | 74% | 61% | 68% | 77% | 68% | |||||||||||||||||||||||||||||||||
| LBO | 34% | 40% | 34% | 26% | 39% | 32% | 23% | 32% | |||||||||||||||||||||||||||||||||
| Breakdown by country | |||||||||||||||||||||||||||||||||||||||||
| France | 33% | 48% | 37% | 30% | 46% | 35% | 30% | 38% | |||||||||||||||||||||||||||||||||
| Germany | 20% | 12% | 13% | 17% | 9% | 13% | 19% | 13% | |||||||||||||||||||||||||||||||||
| Italy | 9% | 7% | 13% | 18% | 14% | 14% | 18% | 20% | |||||||||||||||||||||||||||||||||
| Benelux | 13% | 15% | 16% | 10% | 14% | 8% | 7% | 5% | |||||||||||||||||||||||||||||||||
| Spain | 11% | 5% | 9% | 5% | 6% | 11% | 10% | 7% | |||||||||||||||||||||||||||||||||
| Other (euro zone) | 14% | 13% | 12% | 20% | 11% | 19% | 16% | 17% | |||||||||||||||||||||||||||||||||
| Breakdown by sector | |||||||||||||||||||||||||||||||||||||||||
| Energy and Raw Materials | 7% | 6% | 5% | 6% | 7% | 9% | 8% | 7% | |||||||||||||||||||||||||||||||||
| Building, Construction | 0% | 3% | 7% | 4% | 8% | 5% | 9% | 7% | |||||||||||||||||||||||||||||||||
| Industrial Equipment | 8% | 11% | 14% | 14% | 17% | 16% | 20% | 20% | |||||||||||||||||||||||||||||||||
| Consumer Products | 3% | 5% | 9% | 7% | 1% | 3% | 4% | 5% | |||||||||||||||||||||||||||||||||
| Agro-Food | 1% | 8% | 2% | 4% | 6% | 4% | 3% | 6% | |||||||||||||||||||||||||||||||||
| Healthcare-Pharmaceuticals | 27% | 18% | 11% | 5% | 11% | 10% | 7% | 9% | |||||||||||||||||||||||||||||||||
| Wholesale, Retail | 4% | 3% | 7% | 4% | 6% | 4% | 3% | 8% | |||||||||||||||||||||||||||||||||
| Transport | 3% | 5% | 3% | 6% | 7% | 5% | 4% | 4% | |||||||||||||||||||||||||||||||||
| TMT | 38% | 27% | 28% | 34% | 21% | 28% | 26% | 18% | |||||||||||||||||||||||||||||||||
| Business and Consumer Services | 9% | 14% | 14% | 16% | 16% | 16% | 16% | 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 - Q1 2024
| Date | Acquirer | Target | Country | Industries | Valuation multiples | See details |
|---|---|---|---|---|---|---|
| 27/03/2024 | Private group led by Sagard | Primelis | Hauts-De-Seine | e-Marketing, Marketing Software | * | 116213 |
| 15/03/2024 | Brady | Gravotech | Rhône | Machine Tools | ** | 116042 |
| 13/03/2024 | Advanced Medical Solutions Group | Peters Surgical | Hauts-De-Seine | Medical Supplies | *** | 116034 |
| 12/03/2024 | inTEST | Alfamation | Italy | Measurement & Test Equipment, Equipement for Test & Measuring | *** | 116017 |
| 11/03/2024 | Dominos Pizza Group | Shorecal | Ireland | Restaurants & Bars | ** | 116030 |
| 05/03/2024 | Twin Disc | Katsa | Finland | Machining Operations, Powertrain | ** | 115911 |
| 04/03/2024 | Halma | Rovers Medical Devices | Netherlands | Medical Equipment | ** | 115901 |
| 21/02/2024 | Axway Software | Sopra Banking Software | Haute-Savoie | Banking software / payment system | ** | 115879 |
| 16/02/2024 | Private group led by IK Partners, Capza | Eurofeu Company | Eure-Et-Loir | Industrial Machinery, Fire Protection Services | ** | 116078 |
| 12/02/2024 | Private Group Led by O2 Capital Partners | Bribus | Netherlands | Kitchen Equipment | ** | 115950 |
| 08/02/2024 | AcadeMedia | Touhula Leikki (Touhula Päiväkodit) | Finland | Day-care centers | ** | 115863 |
| 07/02/2024 | Private group led by Exponent Private Equity | Chanelle Pharma | Ireland | Pharmaceuticals, Veterinary Pharmaceuticals | ** | 116340 |
| 05/02/2024 | Sonae SGPS | BCF Life Sciences | Morbihan | Food Complements | ** | 116432 |
| 01/02/2024 | Ingersoll Rand | Friulair | Italy | Pumps & PVF | ** | 115685 |
| 31/01/2024 | Amadeus IT Group | Vision-Box - Solucoes De Visao Por Computador | Portugal | Electronic Security Systems, Security Software | *** | 116022 |
| 19/01/2024 | Soudal Holding | Durante Adesivi | Italy | Specialty Chemicals | * | 116568 |
| 16/01/2024 | Private group led by Andera Acto, Fonds France Nucléaire, Société Générale Capital Partenaires | Groupe ADF | Bouches-Du-Rhône | Engineering and Technology Consulting | ** | 116240 |
| 15/01/2024 | John Cockerill | Arquus | Yvelines | Aerospace & Defence, Special Purpose Vehicles & Equipment | * | 115933 |
| 10/01/2024 | Oxford Instruments | First Light Imaging | Bouches-Du-Rhône | Electronic Equipment, Optoelectronics | ** | 115821 |
| 10/01/2024 | DDC Enterprise | GL Industry | Italy | Canned, Frozen and Cooked Food | ** | 115984 |
| 04/01/2024 | L'Occitane International | Dr. Vranjes Firenze | Italy | Personal Products, Cosmetics & Perfumes | ** | 115896 |
| 29/12/2023 | Private group led by BNP Paribas Développement, Garibaldi Participations and Crédit Agricole Alpes Développement (C2AD) | Distritoys (Groupe King Jouet) | Isère | Toys & Gifts (retail) | ** | 115887 |
| 21/12/2023 | Recticel | Rex Panels & Profiles | Belgium | Building Materials & Fixtures | ** | 115110 |
| 14/12/2023 | Private group led by AXIO Capital | SIMP | Seine-Maritime | Doors & Windows Manufacturers | * | 115172 |
| 14/12/2023 | Serco Group | European Homecare | Germany | Other Business Services, Business Process Outsourcing (BPO) | ** | 115062 |
| 14/12/2023 | Tinexta | ABF Group | Indre-Et-Loire | Competitive Intelligence & Market Studies | ** | 115852 |
| 12/12/2023 | Tobii | FotoNation | Ireland | Transport Management System (TMS) | *** | 115207 |
| 11/12/2023 | Private group led by BNP Paribas Développement, Sénevé Capital, Unigrains | Loyez Woessen | Nord | Dairy Products & Ice Creams | * | 115219 |
| 07/12/2023 | Sekisui Jushi | WEMAS Absperrtechnik | Germany | Plastics Engineering , Plastic Packaging Manufacturers | ** | 115034 |
| 01/12/2023 | Fincantieri | Remazel Engineering | Italy | Electronic Equipment, Special Purpose Vehicles & Equipment | *** | 115050 |
| 29/11/2023 | Stille | Fehling Instruments | Germany | Medical Equipment | *** | 114894 |
| 27/11/2023 | Private Group led by Towerbrook | EFESO Management Consultants | Paris | Management Software, Software as a Service (SAAS), Business and Management Consultancy | ** | 114884 |
| 27/11/2023 | NGE (New Generations of Entrepreneurs) | Sade-Compagnie Générale de Travaux d’Hydraulique(SADE-CGTH) | Paris | Heavy / Civil Construction | *** | 114963 |
| 14/11/2023 | DCC | PROGAS | Germany | Utilities | ** | 115238 |
| 14/11/2023 | Generix | DDS Logistics (Data Dynamic Systems) | Paris | Supply Chain Management (SCM), Transport Management System (TMS) | * | 115441 |
| 13/11/2023 | Midwich Group | prodyTel Distribution | Germany | Telecom Products Retail | *** | 114921 |
| 10/11/2023 | Private Group backed by Siparex | Distriwatt | Gironde | e-commerce B2B, Electrical Product (retail) | * | 114899 |
| 09/11/2023 | RSM UK | RSM Ireland Business Advisory | Ireland | Tax and Legal Consultancy | * | 115005 |
| 08/11/2023 | Suzhou Delphi Laser Co | Corning Laser Technologies (CLT) | Germany | Electronic Equipment (for corporates), Machine Tools | ** | 114956 |
| 07/11/2023 | Gaming Innovation Group | KaFe Rocks (Time2Play Media) | Malta | Online Gambling | * | 114728 |
| 03/11/2023 | Public Power Corporation | Kotsovolos (Dixons South East Europe AEVE) | Greece | Diversified R&W | *** | 114849 |
| 31/10/2023 | Greif | Ipackchem Group | Paris | Plastic Packaging Manufacturers | *** | 114794 |
| 27/10/2023 | Terrena | Tipiak | Loire-Atlantique | Bakery Products, Canned, Frozen and Cooked Food | *** | 114682 |
| 23/10/2023 | LloydsPharmacy Ireland | Kalamunda | Ireland | Drugs Retailers | * | 115321 |
| 20/10/2023 | Samvardhana Motherson Automotive Systems Group (Motherson) | AD Industries (ADI) | Corrèze | Machining Operations, Aircraft Parts Suppliers | ** | 114541 |
| 17/10/2023 | Unieuro | Covercare | Italy | Specialized Consumer Services, Heating, Ventilation and Air-Conditioning (HVAC) | *** | 114557 |
| 10/10/2023 | Hamilton Thorne | Gynetics | Belgium | Medical Equipment | *** | 114949 |
| 09/10/2023 | Nolet Group | Lucas Bols | Netherlands | Distilled Spirits & Liqueurs | *** | 114968 |
| 06/10/2023 | Climb Global Solutions | DataSolutions | Ireland | IT Supply Chain Services | * | 115042 |
| 04/10/2023 | PTC | pure-systems | Germany | Management Software | * | 115197 |
| 04/10/2023 | Ingersoll Rand | Oxywise | Slovakia | Industrial Machinery, Pumps & PVF | * | 114816 |
| 03/10/2023 | RHI Magnesita | Preiss-Daimler Group refractory business (P-D Refractories) | Germany | Mining | * | 114722 |
| 03/10/2023 | Private group led by Hivest Capital | Marchante | Savoie | Industrial Machinery | * | 115178 |
| 01/10/2023 | Private group led by Crédit Mutuel Equity | Groupe DFM | Val-De-Marne | IT Service Providers, Security Services, IT Outsourcing | *** | 115244 |
| 01/10/2023 | Abu Dhabi Ports Company PJSC | Sese Autologistics | Spain | Land transportation | *** | 114751 |
| 31/07/2023 | Private Group backed by IRD, Bpifrance, Rives Croissance, Socadif | Iagona | Hauts-De-Seine | Integrated software, Electronic Equipment (for corporates) | * | 114865 |
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
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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
