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., Q3 2023_____________________
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> Detailed Data on Euro Zone Multiples
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Argos Index® Mid-Market
Evolution of Euro Zone Mid-Market Private Company Prices - Quarterly Index carried out by Epsilon Research
Q3 2023: Argos Index® declined to 9.1x EBITDA.
Paris (France) – 23 November 2023 – 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 3rd quarter of 2023, macro-economic conditions depressed all mid-market segments in the eurozone. Inflation was persistent, the economy slowed, the ECB boosted interest rates – faster than it ever had since the inception of the euro – and there were strong geopolitical pressures. These factors began to peck away at the sale prices of PMEs, as demonstrated by the record-high percentage of sales at multiples below 7x EBITDA.
The acquisition price of unlisted European SMEs declined 8% to 9.1x EBITDA.
- The Argos Index® dropped to 9.1x EBITDA in the 3rd quarter of 2023, after three quarters of relative stability.
- It was down 20% from its record high in the 2nd quarter of 2021 and has fallen to its 1st quarter 2018 level.
Decline and convergence of prices paid by strategic buyers and investment funds.
- The multiples paid by large companies fell to 9.1x EBITDA. In search of growth opportunities, those companies were very active in the M&A market. The economic and financial context was weak, but was offset by the decline in prices.
- Multiples paid by investment funds continued to decline, to 9.4x EBITDA. So did their percentage of the number of transactions and the value of eurozone mid-market M&A activity, which remained at a low of 15%.
Record proportion of transactions below 7x EBITDA
- 44% of transactions took place at the extremes, i.e., at multiples < 7x or > 15x EBITDA.
- This high level came about because transactions at < 7x EBITDA increased sharply. For the first time ever, they represented 30% of transactions analysed.
- The percentage of transactions at multiples > 15x EBITDA fell to 14%, close to its all-time low.
The value of eurozone mid-market M&A activity declined, but the number of transactions held up.
- In the 3rd quarter of 2023, eurozone mid-market M&A activity declined by 11% in value and 14% in volume.
- Over the first three quarters of 2023, activity was down 40% in value, but only 9% in volume, compared with the year-earlier period.
- Once again, the lower mid-market was more resilient in liquidity terms than the upper mid-market, where liquidity continued to be scarce.
> You can download the full study under "Data Publication" (left)
Argos Mid Market Index - Sample Analysis
| H1 2020 | H2 2020 | H1 2021 | H2 2021 | H1 2022 | H2 2022 | H1 2023 | T3 2023 | |||||||||||||||||||||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Sample Size | ||||||||||||||||||||||||||||||||||||||||
| # deals retained for the index | 60 | 70 | 87 | 92 | 107 | 112 | 101 | 106 | ||||||||||||||||||||||||||||||||
| Average Equity Value (€m) | 117.7 | 143.6 | 165.0 | 133.9 | 109.6 | 142.5 | 119.7 | 121.7 | ||||||||||||||||||||||||||||||||
| Average N-1 sales (€m) | 89.7 | 100.1 | 112.9 | 106.6 | 120.0 | 123.8 | 112.8 | 109.1 | ||||||||||||||||||||||||||||||||
| N-1 EBITDA margin | 19% | 17% | 16% | 18% | 13% | 16% | 17% | 17% | ||||||||||||||||||||||||||||||||
| N-1 EBIT margin | 10% | 14% | 13% | |||||||||||||||||||||||||||||||||||||
| Breakdown by size (equity value) | ||||||||||||||||||||||||||||||||||||||||
| [15-49] €m | 35% | 29% | 23% | 35% | 32% | 31% | 32% | 31% | ||||||||||||||||||||||||||||||||
| [50-99] €m | 25% | 16% | 15% | 22% | 31% | 25% | 24% | 23% | ||||||||||||||||||||||||||||||||
| [100-150] €m | 13% | 20% | 14% | 10% | 12% | 14% | 16% | 17% | ||||||||||||||||||||||||||||||||
| Breakdown by deal type | ||||||||||||||||||||||||||||||||||||||||
| Acquisition | 65% | 66% | 60% | 66% | 74% | 61% | 68% | 79% | ||||||||||||||||||||||||||||||||
| LBO | 35% | 34% | 40% | 34% | 26% | 39% | 32% | 21% | ||||||||||||||||||||||||||||||||
| Breakdown by country | ||||||||||||||||||||||||||||||||||||||||
| France | 48% | 33% | 48% | 37% | 30% | 46% | 35% | 30% | ||||||||||||||||||||||||||||||||
| Germany | 17% | 20% | 12% | 13% | 17% | 9% | 13% | 19% | ||||||||||||||||||||||||||||||||
| Italy | 8% | 9% | 7% | 13% | 18% | 14% | 14% | 17% | ||||||||||||||||||||||||||||||||
| Benelux | 8% | 13% | 15% | 16% | 10% | 14% | 8% | 9% | ||||||||||||||||||||||||||||||||
| Spain | 7% | 11% | 5% | 9% | 5% | 6% | 11% | 11% | ||||||||||||||||||||||||||||||||
| Other (euro zone) | 12% | 14% | 13% | 12% | 20% | 11% | 19% | 14% | ||||||||||||||||||||||||||||||||
| Breakdown by sector | ||||||||||||||||||||||||||||||||||||||||
| Energy and Raw Materials | 9% | 7% | 6% | 5% | 6% | 7% | 9% | 9% | ||||||||||||||||||||||||||||||||
| Building, Construction | 0% | 0% | 3% | 7% | 4% | 8% | 5% | 8% | ||||||||||||||||||||||||||||||||
| Industrial Equipment | 4% | 8% | 11% | 14% | 14% | 17% | 16% | 17% | ||||||||||||||||||||||||||||||||
| Consumer Products | 6% | 3% | 5% | 9% | 7% | 1% | 3% | 5% | ||||||||||||||||||||||||||||||||
| Agro-Food | 4% | 1% | 8% | 2% | 4% | 6% | 4% | 3% | ||||||||||||||||||||||||||||||||
| Healthcare-Pharmaceuticals | 12% | 27% | 18% | 11% | 5% | 11% | 10% | 12% | ||||||||||||||||||||||||||||||||
| Wholesale, Retail | 4% | 4% | 3% | 7% | 4% | 6% | 4% | 5% | ||||||||||||||||||||||||||||||||
| Transport | 6% | 3% | 5% | 3% | 6% | 7% | 5% | 2% | ||||||||||||||||||||||||||||||||
| TMT | 39% | 38% | 27% | 28% | 34% | 21% | 28% | 23% | ||||||||||||||||||||||||||||||||
| Business and Consumer Services | 16% | 9% | 14% | 14% | 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 - T3 2023
| Date | Acquirer | Target | Country | Industries | Valuation multiples | See details |
|---|---|---|---|---|---|---|
| 21/09/2023 | Essentra | BMP | Italy | Plastics Engineering | *** | 113968 |
| 19/09/2023 | Private group led by McWin Capital Partners | Big Mamma | Paris | Restaurants & Bars | ** | 114176 |
| 17/09/2023 | Camtek | FRT | Germany | Measurement & Test Equipment, Equipement for Test & Measuring | * | 114315 |
| 13/09/2023 | discoverIE Group | 2J Antennas | Slovakia | Telecommunications equipment | *** | 113885 |
| 31/08/2023 | Johnson Service Group | Harkglade | Ireland | Facilities Management | ** | 113739 |
| 25/08/2023 | Glen Dimplex Group | Hyfra Industriekühlanlagen | Germany | Heating, Ventilation and Air-Conditioning (HVAC) | * | 114190 |
| 24/08/2023 | Cordiant Digital Infrastructure | Speed Fibre DAC | Ireland | Cable / Fixe Line Telecom | *** | 113874 |
| 07/08/2023 | Séché Environnement | Furia | Italy | Waste Collection Services | *** | 113947 |
| 31/07/2023 | Mindray Medical Netherlands | DiaSys Diagnostic Systems | Germany | Diagnostic Medical Equipment | * | 113498 |
| 27/07/2023 | Serveo Servicios | Sacyr Facilities | Spain | Facilities Management | *** | 113479 |
| 25/07/2023 | Wavestone | Q_PERIOR | Germany | IT Consulting | ** | 113601 |
| 23/07/2023 | La Française des Jeux (FDJ) | Premier Lotteries Ireland (PLI) | Ireland | Gambling | ** | 113523 |
| 18/07/2023 | Digit'Ed | 24 Ore Business School (Bs24) | Italy | e-services (B2C), Education / Learning software | * | 113512 |
| 18/07/2023 | Loomis | Cima | Italy | Electronic Security Systems, Electronic Security Systems | *** | 113456 |
| 18/07/2023 | Groupe Vabel | Laboratoires Sarbec | Nord | Personal Products | * | 113988 |
| 18/07/2023 | Private group led by UI Investissement and BNP Paribas Développement | ENRTEC (AgriWatt) | Nord | Solar Service Provider | * | 114030 |
| 17/07/2023 | Kingspan Group | Steico SE | Germany | Building Materials & Fixtures | *** | 113497 |
| 14/07/2023 | Valmet | Process Gas Chromatography Business of Siemens | Germany | Measurement & Test Equipment, Equipement for Test & Measuring | *** | 113451 |
| 13/07/2023 | Diploma | Distribuidora Internacional Carmen (DICSA) | Spain | Pumps & PVF | *** | 113486 |
| 12/07/2023 | RWS | Propylon | Ireland | Facilities Management | ** | 113518 |
| 10/07/2023 | nVent Electric | TEXA Industries | Italy | Heating, Ventilation and Air-Conditioning (HVAC) | ** | 113588 |
| 07/07/2023 | Valmet Oyj | Körber Tissue (Körber's Business Area Tissue) | Italy | Processing and Packaging Machinery | *** | 113566 |
| 07/07/2023 | YouGov | Consumer Panel Business of GfK SE | Germany | Marketing Services, Competitive Intelligence & Market Studies | ** | 113487 |
| 04/07/2023 | WAG Payment Solutions (Eurowag) | JITpay | Germany | Banking software / payment system, Software as a Service (SAAS), Supply Chain Management (SCM), Transport Management System (TMS) | ** | 114042 |
| 03/07/2023 | GPI | Evolucare Technologies | Somme | Medical Software | ** | 114199 |
| 03/07/2023 | Investcorp | SEC Newgate | Italy | Marketing & Communication Services | ** | 114443 |
| 03/07/2023 | Royal Unibrew A/S | Vrumona | Netherlands | Soft Drinks | *** | 113788 |
| 29/06/2023 | Donaldson | Univercells Technologies | Belgium | Industrial Machinery, Medical Equipment | *** | 113582 |
| 23/06/2023 | Management buyout backed by Siparex | Cevino Glass | Nord | Building Materials & Fixtures | * | 113537 |
| 15/06/2023 | Banijay Group | Balich Wonder Studio s.r.l. | Italy | Event Organiser | * | 112881 |
| 14/06/2023 | Private Group led by the Management | MTR Bâtiment (Méthodes et Travaux Bâtiment) | Seine-Et-Marne | Building Construction | ** | 112813 |
| 14/06/2023 | Albany International | Heimbach | Germany | Paper Industries, Synthetic Fibers / Nonwoven fabrics | *** | 112904 |
| 31/05/2023 | Private Group led by Argos Wityu | TKH France (CAE Groupe) | Essonne | Cables & Wires Manufacturers | ** | 112792 |
| 30/05/2023 | Rexel | Wasco | Netherlands | Distribution of Materials & Equipment for Buildings / Public Works, Heating Equipment (retail), Electrical Product (retail) | *** | 112799 |
| 30/05/2023 | Private Group Led by SGT German Private Equity | Elatec | Germany | Electronic Security Systems, Electronic Security Systems | ** | 112825 |
| 30/05/2023 | JCDecaux | Italian and Spanish businesses of Clear Channel Outdoor | Spain | Outdoor Advertising | *** | 112831 |
| 22/05/2023 | Åland Penningautomatförening | 888 Holdings Latvian activity | Latvia | Online Gaming, Gambling | * | 112806 |
| 16/05/2023 | Shandong Sinocera Functional Material Co | DEKEMA Dental-Keramikoefen | Germany | Medical Equipment | *** | 112784 |
| 15/05/2023 | Private group led by Nord Capital Investissement, Turenne Groupe, Sofipaca | Fresh Invest (Réseau Vitalis) | Nord | Fruits and Vegetables R&W | *** | 113483 |
| 10/05/2023 | Private Group backed by UI Investissement and Bpifrance | Aurexia | Paris | Business and Management Consultancy | * | 113817 |
| 09/05/2023 | JD Sports Fashion | Groupe Courir | Paris | Footwear (retail), Sportswear, Clothing Retail (multi-brands) | ** | 112633 |
| 28/04/2023 | PI Industries | Archimica | Italy | Specialty Chemicals, Laboratory Testing Services | ** | 112912 |
| 25/04/2023 | Columbus McKinnon | montratec | Germany | Industrial Machinery, Electronic Equipment (for corporates) | ** | 112526 |
| 24/04/2023 | Private Group backed by Vivalto Partners | Laboratoires Delbert | France | Pharmaceuticals, Biomedical Research Laboratory | * | 112600 |
| 24/04/2023 | CANCOM SE | K-Businesscom | Austria | IT Consulting & Services | ** | 112691 |
| 20/04/2023 | Volution Group | I-Vent | Slovakia | Heating Components & Equipments | *** | 112488 |
| 06/04/2023 | Magellan Partners | Adone Conseil | Paris | Business and Management Consultancy, IT Consulting | ** | 112886 |
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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> 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.
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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
