A rise in valuations during H1 2010
Thursday, 11 November 2010 11:03

description de l'illustration

Mid-Market Index rose to 6.4x historical EBITDA, an increase of 7% over its level recorded in December 2009 (6.2x).

This increase in mid-market valuations occured in an M&A market where the activity remained weak during the first half year, with the exception of mid-market LBO transactions which were more numerous compared to previous periods.

These valuations remain far below the valuations reached during H2 2006 and H1 2007 at 9x EBITDA.

The increase in multiples is driven essentially by strategic buyers (6.5x compared to 6.2x in December 2009) who are returning progressively to the market

On the other hand, the multiples paid by the LBO funds show only a marginal increase: 5.8x compared to 5.7x in December 2009. However, this apparent stability masks a double trend: on the one hand a rise in the multiples for profitable companies which withstood the crisis period, on the other, a further decrease for companies whose results have not attained their pre-crisis level, and whose valuation remains weak.


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