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Argos Mid Market Index

Author: Argos Soditic and Epsilon Research
Date: May 2015

The Argos Mid-Market index has continued to climb in the first quarter of 2015 (+4%) to 8.4x EBITDA.

Paris, May 20th, 2015

This growth is linked to the big increase in prices paid by trade buyers to 8.7x EBITDA (+9% compared to the 4th quarter of 2014) supported by the continued growth in stock markets and the renewed interest in the Eurozone from overseas buyers, particularly from North America.

Conversely, there is a marked disconnection of prices paid by private equity funds (-11% to 7.5x EBITDA) and the number of transactions (-20% in volume terms in the first quarter). This could be explained by the determination of funds not to align themselves with prices offered by strategic buyers for certain assets, as in 2006 and 2007.

In general, M&A activity (in volume terms) remains stable in the Mid-Market, in a more favorable short term macro-economic environment in the Eurozone (ECB monetary policy, fall in the euro and oil price). However, investors still don’t seem to be convinced about more long term perspectives.

Geography: Eurozone

Type of study: Consulting research

Relevant for: Mid Market

Source: Argos Soditic and Epsilon Research