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., Q1 2022_____________________
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Argos Index® mid-market
Evolution of Euro Zone Mid-Market Private Company Prices - Quarterly Index carried out by Epsilon Research
The Argos Index® climbed back to 10.6x EBITDA in Q1 2022
Acquisition prices of unlisted European SMEs climbed back to 10.6x EBITDA, buoyed by the multiples paid by investment funds.
Paris (France) – 18 May 2022 – 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 Argos Index® Mid-market for the first 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.
In the first quarter of 2022, the Argos Index® advanced to 10.6x EBITDA, after the correction that began in the second quarter of 2021. This increase, driven by the high end of the mid-market, resulted from several factors: the prices investment funds paid, the sharp recovery in economic growth in 2021, financial terms that remained favourable and the uptick in mid-market M&A activity in the first quarter.
Investment funds paid higher multiples
- Multiples paid by investment funds increased to 10.8x EBITDA, after declining sharply in the second half of 2021. They were underpinned by capital seeking an investment outlet, in a financial context that was still supportive despite higher inflation.
- Multiples paid by strategic buyers advanced slightly to 10.0x EBITDA. This high level is in line with the behaviour of equity markets, which held up well during the first quarter[1].
Multiples were more homogeneous
- First-quarter 2022 multiples were more homogeneous than they have been over the past two years. The standard deviation contracted.
- This reflected a readjustment between the tech-healthcare and manufacturing-services sectors, against a background of declining Covid incidence in Europe. The spread between median tech-healthcare and manufacturing-services multiples contracted to less than 1x EBITDA, vs more than 4x EBITDA during the fourth quarter of 2021.
- The share of transactions with multiples higher than 15x EBITDA contracted sharply to 15% of analysed transactions, their pre-Covid level.
European mid-market M&A activity grew, while worldwide activity declined.
- First-quarter 2022 mid-market M&A activity increased by 12% in volume and 3% in value.
- It was driven by the lower mid-market (activity was stable on deals > €150m), the sharp recovery in growth post-Covid, a supportive financial context and growth strategies on the part of both large companies and investment funds.
- This increase contrasts with the 23% decline in overall M&A activity in the first quarter. Following an exceptional 2021, M&A activity fell victim to the war in Ukraine and deteriorating geopolitical, economic and financial conditions: inflation, increases in energy and raw material prices, monetary tightening to be exercised by central banks, and further Covid-related value chain disorganisation in China.
[1] L’EURO STOXX® TMI Small was down 6.5% in Q1 2022 compared with Q4 2021, but up 2.9% compared with Q1 2021.
> You can download the press release under "Data Publication" (left)
Argos Mid Market Index - Sample Analysis
| H2 2018 | H1 2019 | H2 2019 | H1 2020 | H2 2020 | H1 2021 | H2 2021 | Q1 2022 | ||||||||||||||||||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Sample Size | |||||||||||||||||||||||||||||||||||||
| # deals retained for the index | 105 | 100 | 101 | 60 | 70 | 87 | 92 | 100 | |||||||||||||||||||||||||||||
| Average Equity Value (€m) | 115.7 | 112.6 | 123.4 | 117.7 | 143.6 | 165.0 | 133.9 | 117.6 | |||||||||||||||||||||||||||||
| Average N-1 sales (€m) | 112.0 | 124.4 | 112.0 | 89.7 | 100.1 | 112.9 | 106.6 | 94.1 | |||||||||||||||||||||||||||||
| N-1 EBITDA margin | 15% | 13% | 15% | 19% | 17% | 16% | 18% | 15% | |||||||||||||||||||||||||||||
| N-1 EBIT margin | 8% | 9% | 12% | 10% | |||||||||||||||||||||||||||||||||
| Breakdown by size (equity value) | |||||||||||||||||||||||||||||||||||||
| [15-49] €m | 36% | 31% | 37% | 35% | 29% | 23% | 35% | 33% | |||||||||||||||||||||||||||||
| [50-99] €m | 20% | 24% | 27% | 25% | 16% | 15% | 22% | 30% | |||||||||||||||||||||||||||||
| [100-150] €m | 18% | 19% | 6% | 13% | 20% | 14% | 10% | 10% | |||||||||||||||||||||||||||||
| Breakdown by deal type | |||||||||||||||||||||||||||||||||||||
| Acquisition | 71% | 65% | 73% | 65% | 66% | 60% | 66% | 74% | |||||||||||||||||||||||||||||
| LBO | 29% | 35% | 27% | 35% | 34% | 40% | 34% | 26% | |||||||||||||||||||||||||||||
| Breakdown by country | |||||||||||||||||||||||||||||||||||||
| France | 34% | 49% | 46% | 48% | 33% | 48% | 37% | 30% | |||||||||||||||||||||||||||||
| Germany | 20% | 14% | 14% | 17% | 20% | 12% | 13% | 20% | |||||||||||||||||||||||||||||
| Italy | 15% | 13% | 10% | 8% | 9% | 7% | 13% | 11% | |||||||||||||||||||||||||||||
| Benelux | 15% | 10% | 14% | 8% | 13% | 15% | 16% | 16% | |||||||||||||||||||||||||||||
| Spain | 6% | 3% | 5% | 7% | 11% | 5% | 9% | 6% | |||||||||||||||||||||||||||||
| Other (euro zone) | 10% | 11% | 11% | 12% | 14% | 13% | 12% | 17% | |||||||||||||||||||||||||||||
| Breakdown by sector | |||||||||||||||||||||||||||||||||||||
| Energy and Raw Materials | 5% | 2% | 11% | 9% | 7% | 6% | 5% | 3% | |||||||||||||||||||||||||||||
| Building, Construction | 5% | 6% | 2% | 0% | 0% | 3% | 7% | 5% | |||||||||||||||||||||||||||||
| Industrial Equipment | 23% | 12% | 11% | 4% | 8% | 11% | 14% | 18% | |||||||||||||||||||||||||||||
| Consumer Products | 4% | 3% | 1% | 6% | 3% | 5% | 9% | 7% | |||||||||||||||||||||||||||||
| Agro-Food | 6% | 7% | 10% | 4% | 1% | 8% | 2% | 4% | |||||||||||||||||||||||||||||
| Healthcare-Pharmaceuticals | 8% | 12% | 8% | 12% | 27% | 18% | 11% | 8% | |||||||||||||||||||||||||||||
| Wholesale, Retail | 5% | 7% | 8% | 4% | 4% | 3% | 7% | 2% | |||||||||||||||||||||||||||||
| Transport | 7% | 7% | 6% | 6% | 3% | 5% | 3% | 7% | |||||||||||||||||||||||||||||
| TMT | 23% | 22% | 29% | 39% | 38% | 27% | 28% | 32% | |||||||||||||||||||||||||||||
| Business and Consumer Services | 14% | 22% | 14% | 16% | 9% | 14% | 14% | 14% | |||||||||||||||||||||||||||||
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 - Q1 2022
| Date | Acquirer | Target | Country | Industries | Valuation multiples | See details |
|---|---|---|---|---|---|---|
| 25/03/2022 | Plastic Omnium | ams OSRAM Automotive Lighting Systems (AMLS) | Germany | Electronics / Electricity / Wiring | *** | 108205 |
| 22/03/2022 | Recticel | TRIMO, arhitekturne rešitve, d.o.o. | Slovenia | Building Materials & Fixtures | *** | 108128 |
| 18/03/2022 | Private Group led by Cathay Capital, Eurazeo and Sagard NewGen | DiliTrust | Paris | Specialized Software, Software as a Service (SAAS) | * | 108198 |
| 18/03/2022 | Ebra (Société d’Investissements Médias) | Humanoid (FrAndroid) | Paris | Internet Portals, Online Newspapers | * | 107971 |
| 10/03/2022 | Luna Innovations | NKT Photonics | Germany | Optoelectronics | ** | 107910 |
| 08/03/2022 | Hexpol | Almaak International | Germany | Plastics Engineering | * | 107818 |
| 16/02/2022 | Nacon | Daedalic Entertainment | Germany | Videogames | * | 107940 |
| 04/02/2022 | CUMI Abrasives | Rhodius Schleifwerkzeuge (Rhodius Abrasives) | Germany | Machining Operations | *** | 107846 |
| 02/02/2022 | Ingersoll Rand | Houdstermaatschappij Jorc | Netherlands | Pumps & PVF | ** | 107870 |
| 01/02/2022 | ABF Ingredients | Fytexia | Hérault | Food Complements | * | 107545 |
| 31/01/2022 | Systemair | Tecnair LV | Italy | Building Materials & Fixtures, Heating Components & Equipments | *** | 107803 |
| 28/01/2022 | Ascopiave | Eusebio Energia | Italy | Phase 4 (In Operation), Hydroelectricity | *** | 108210 |
| 28/01/2022 | House of HR | Solcom | Germany | Labour recruitment and provision of personnel (permanent) | * | 107753 |
| 24/01/2022 | Munters Group | EDPAC International | Ireland | Heating Components & Equipments | *** | 107827 |
| 13/01/2022 | Team17 Group | Astragon Entertainment | Germany | Videogames | * | 107778 |
| 13/01/2022 | Digital 9 Infrastructure | Tetra Ireland Communications | Ireland | Telecom services for corporates | *** | 107928 |
| 07/01/2022 | Ergo | Asystec | Ireland | IT Consulting | ** | 107933 |
| 23/12/2021 | Private Group led by Five Arrows | Padoa | Paris | Software as a Service (SAAS), Medical Software | * | 107773 |
| 14/12/2021 | ID Logistics | Colisweb | Nord | Logistics Services | ** | 107300 |
| 10/12/2021 | Private gourp led by Capza | Winback Group | Pyrénées-Atlantiques | Medical Equipment | *** | 107327 |
| 10/12/2021 | Hilton Food Group | Dutch Seafood Company ("Foppen") | Netherlands | Sea Food | *** | 107179 |
| 09/12/2021 | Medicover | NIPD Genetics | Cyprus | Laboratory Testing Services | * | 107245 |
| 24/11/2021 | Private Group led by Bridgepoint Development Capital (BDC) | Plug in Digital | Hérault | e-commerce (B2C), Online Gaming, Videogames | * | 107435 |
| 23/11/2021 | Donaldson Comapany | Solaris Biotechnology | Italy | Medical Equipment, Industrial Machinery for the Food Processing Industry | ** | 107305 |
| 22/11/2021 | Bilendi | respondi | Germany | Database Marketing | ** | 107156 |
| 17/11/2021 | Aquinos Industry, SGPS | Recticel Bedding Business | Belgium | Furnishings | *** | 107187 |
| 15/11/2021 | STAR7 | LocalEyes | Ireland | Enterprise Content Management (ECM) | ** | 107379 |
| 11/11/2021 | Private goup led by Tikehau Capital and Meanings Capital | Groupe Sterne | Gironde | Land transportation, Logistics Services | * | 107986 |
| 09/11/2021 | Nitro Software | Connective | Belgium | Software as a Service (SAAS), Security Software | *** | 107169 |
| 08/11/2021 | PIB Group | Campion Insurance | Ireland | Insurance Brokerage | * | 107395 |
| 04/11/2021 | Private Group led by LBO France | Alliance Marine | Var | Ship manufacturers & suppliers, Sporting Goods Retailers | * | 107270 |
| 03/11/2021 | Private Group led by Montagu | Eudonet | Hauts-De-Seine | Customer Relationship Management (CRM) | * | 106667 |
| 02/11/2021 | John Bean Technologies | Urtasun Tecnología Alimentaria | Spain | Industrial Machinery for the Food Processing Industry | ** | 106767 |
| 28/10/2021 | Private Group Led By Portobello Capital | Infrastructure Services Business of Ferrovial | Spain | Heavy / Civil Construction | *** | 107201 |
| 27/10/2021 | Steelcase | Viccarbe Habitat | Spain | Furnishings | * | 106732 |
| 26/10/2021 | Proact IT Group | ahd | Germany | IT Outsourcing, System Integration | *** | 107194 |
| 20/10/2021 | Marlowe | Riskwize (EssentialSkillz) | Ireland | Internet Professional Services (B2B), Education / Learning software | ** | 107131 |
| 18/10/2021 | Flex | Anord Mardix | Ireland | Electrical Components & Equipments | *** | 107408 |
| 18/10/2021 | Kargo Global | Betapond (StitcherAds) | Ireland | e-Marketing, Marketing Software | ** | 107108 |
| 15/10/2021 | Private group led by Sodero Gestion, BNP Paribas Développement and BPI France | Denis Matériaux | Ille-Et-Vilaine | Distribution of Materials & Equipment for Buildings / Public Works | *** | 107403 |
| 13/10/2021 | Sdiptech | Certus Technologies (Certus Automation) | Netherlands | Transport Management System (TMS) | *** | 107222 |
| 11/10/2021 | Seco | Garz & Fricke | Germany | Integrated software, Electronic Equipment (for corporates) | *** | 107217 |
| 04/10/2021 | FW Thorpe | Electrozemper | Spain | Electrical Components & Equipments | ** | 106774 |
| 01/10/2021 | Silgan | Easytech Closures | Italy | Metal Packaging Manufacturers | * | 106803 |
| 01/10/2021 | BICO Group (formerly CELLINK) | QInstruments | Germany | Medical Equipment | ** | 106707 |
| 01/10/2021 | BizLink | Leoni Industrial Solutions | Germany | Cables & Wires Manufacturers | * | 107241 |
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
Access restricted to "Epsilon Eurozone Data" subscribers.
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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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> 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
