What do they think of the Index?
- Professor Reiner Braun, Technical University of Munich
- Éric de Montgolfier, CEO of Invest Europe
Data Publication
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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 2024: the Argos Index® back up to 9.5x EBITDA
Paris (France) – 20 November 2024 – The mid-market Argos Index® for the third quarter of 2024, published by Argos Wityu, the independent European investment fund, and Epsilon Research, the online platform for the management of unlisted M&A transactions, is now available. Launched in 2006, this index tracks the valuations of unlisted eurozone SMEs in which a majority stake has been acquired during the last six months.
In the third quarter of 2024, acquisition prices for unlisted eurozone SMEs rose to 9.5x EBITDA. The index was boosted by a progressive recovery in M&A activity and a rebound in LBO transactions in the mid-market (between €15 million and €500 million). Higher prices were driven by the availability of capital and improved funding conditions, against the backdrop of a rapid fall in inflation that prompted the ECB to start a rate-cutting cycle. However, the process is a gradual one because of the major geopolitical uncertainties that remain in place, along with the eurozone’s weak economic growth.
Acquisition multiples for unlisted European SMEs recovered to 9.5x EBITDA in Q3.
- In the third quarter of 2024, the Argos Index® rebounded to 9.5x EBITDA after three years in which it fell steadily from 11.6x to 8.9x EBITDA.
The index was supported by an upturn in multiples paid by investment funds.
- In the third quarter of 2024, multiples paid by investment funds were up significantly, rising 8.6% to 10.1x EBITDA.
- Those paid by strategic buyers rose slightly to 8.8x EBITDA, in line with the rally in listed equities.
- The gap between multiples paid by investment funds and strategic buyers widened to 1.3x EBITDA during the quarter. This confirms the reversal seen since 2021 and the Covid crisis, since when funds have on average paid 0.9x EBITDA more than strategic buyers.
A smaller proportion of transactions took place at extreme multiples.
- In the third quarter of 2024, 39% of transactions took place at extreme multiples, i.e. less than 7x or more than 15x EBITDA. This represents a much smaller proportion than the 48% seen in the previous quarter.
- 22% of transactions analysed had multiples of less than 7x EBITDA, sharply down on the Q2 2024 figure of 31%.
- The proportion of transactions at multiples of more than 15x EBITDA was stable at 17%, while the proportion of those taking place at more than 20x EBITDA rose to 6%.
The recovery in eurozone mid-market M&A volumes continued, led by the LBO market.
- Eurozone mid-market M&A activity rose by 7% compared with the third quarter of 2023. Over the first three quarters of 2024, based on disclosed transactions, the number of deals was up 8% and their value was up 11% year-on-year.
- The upturn was driven by transactions of less than €150 million and by the faster recovery in the LBO market, where the number of deals rose by 30% and their value by 80% year-on-year in the first nine months of 2024. The proportion of LBOs continued to increase: they accounted for 17% of deals in the M&A market in the second and third quarters of 2024, up from 15% in 2023.
> You can download the full study under "Data Publication" (left)
Argos Mid Market Index - Sample Analysis
H1 2021 | H2 2021 | H1 2022 | H2 2022 | H1 2023 | H2 2023 | H1 2024 | T3 2024 | |||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Sample Size | ||||||||||||||||||||||||||||||||||||||||||
# deals retained for the index | 87 | 92 | 107 | 112 | 101 | 109 | 99 | 105 | ||||||||||||||||||||||||||||||||||
Average Equity Value (€m) | 165.0 | 133.9 | 109.6 | 142.5 | 119.7 | 112.5 | 116.4 | 129.7 | ||||||||||||||||||||||||||||||||||
Average N-1 sales (€m) | 112.9 | 106.6 | 120.0 | 123.8 | 112.8 | 127.0 | 112.4 | 130.3 | ||||||||||||||||||||||||||||||||||
N-1 EBITDA margin | 16% | 18% | 13% | 16% | 17% | 16% | 16% | 17% | ||||||||||||||||||||||||||||||||||
N-1 EBIT margin | 14% | 11% | 10% | |||||||||||||||||||||||||||||||||||||||
Breakdown by size (equity value) | ||||||||||||||||||||||||||||||||||||||||||
[15-49] €m | 23% | 35% | 32% | 31% | 32% | 40% | 41% | 35% | ||||||||||||||||||||||||||||||||||
[50-99] €m | 15% | 22% | 31% | 25% | 24% | 24% | 19% | 24% | ||||||||||||||||||||||||||||||||||
[100-150] €m | 14% | 10% | 12% | 14% | 16% | 9% | 14% | 9% | ||||||||||||||||||||||||||||||||||
Breakdown by deal type | ||||||||||||||||||||||||||||||||||||||||||
Acquisition | 60% | 66% | 74% | 61% | 68% | 77% | 60% | 54% | ||||||||||||||||||||||||||||||||||
LBO | 40% | 34% | 26% | 39% | 32% | 23% | 40% | 46% | ||||||||||||||||||||||||||||||||||
Breakdown by country | ||||||||||||||||||||||||||||||||||||||||||
France | 48% | 37% | 30% | 46% | 35% | 30% | 51% | 47% | ||||||||||||||||||||||||||||||||||
Germany | 12% | 13% | 17% | 9% | 13% | 19% | 10% | 10% | ||||||||||||||||||||||||||||||||||
Italy | 7% | 13% | 18% | 14% | 14% | 18% | 15% | 16% | ||||||||||||||||||||||||||||||||||
Benelux | 15% | 16% | 10% | 14% | 8% | 7% | 8% | 8% | ||||||||||||||||||||||||||||||||||
Spain | 5% | 9% | 5% | 6% | 11% | 10% | 3% | 8% | ||||||||||||||||||||||||||||||||||
Other (euro zone) | 13% | 12% | 20% | 11% | 19% | 16% | 13% | 11% | ||||||||||||||||||||||||||||||||||
Breakdown by sector | ||||||||||||||||||||||||||||||||||||||||||
Energy and Raw Materials | 6% | 5% | 6% | 7% | 9% | 8% | 7% | 5% | ||||||||||||||||||||||||||||||||||
Building, Construction | 3% | 7% | 4% | 8% | 5% | 9% | 3% | 5% | ||||||||||||||||||||||||||||||||||
Industrial Equipment | 11% | 14% | 14% | 17% | 16% | 20% | 20% | 20% | ||||||||||||||||||||||||||||||||||
Consumer Products | 5% | 9% | 7% | 1% | 3% | 4% | 7% | 6% | ||||||||||||||||||||||||||||||||||
Agro-Food | 8% | 2% | 4% | 6% | 4% | 3% | 6% | 7% | ||||||||||||||||||||||||||||||||||
Healthcare-Pharmaceuticals | 18% | 11% | 5% | 11% | 10% | 7% | 10% | 7% | ||||||||||||||||||||||||||||||||||
Wholesale, Retail | 3% | 7% | 4% | 6% | 4% | 3% | 5% | 3% | ||||||||||||||||||||||||||||||||||
Transport | 5% | 3% | 6% | 7% | 5% | 4% | 5% | 4% | ||||||||||||||||||||||||||||||||||
TMT | 27% | 28% | 34% | 21% | 28% | 26% | 17% | 27% | ||||||||||||||||||||||||||||||||||
Business and Consumer Services | 14% | 14% | 16% | 16% | 16% | 16% | 20% | 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 - H1 2024 - T3 2024
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Date | Acquirer | Target | Country | Industries | Valuation multiples | See details |
---|---|---|---|---|---|---|
24/09/2024 | Private Group led by Dentressangle Capital | EDL | Bouches-Du-Rhône | Software as a Service (SAAS), Medical Software | * | 118422 |
18/09/2024 | Private group led by EMZ Partners and Bpifrance | Oderis Consulting | France | Audit & Accounting | ** | 118324 |
09/09/2024 | Theon International | Harder Digital Ingenieur-und Industriegesellschaft | Germany | Electronic Equipment, Optoelectronics | *** | 118144 |
05/09/2024 | Private groupe led by Cerea Partners | Isnard Transalcool | Alpes-Maritimes | Trucking, Logistics Services | * | 118071 |
05/09/2024 | Enerpac Tool Group | DTA The Smart Move | Spain | Special Purpose Vehicles & Equipment | ** | 118083 |
05/09/2024 | Spectris | Piezocryst Advanced Sensorics | Austria | Measurement & Test Equipment, Equipement for Test & Measuring | ** | 118100 |
03/09/2024 | Private group led by Argos Wityu, Crédit Mutuel Equity, UI Investissement | Routin | Savoie | Soft Drinks | * | 118054 |
20/08/2024 | R&S Group | Kyte Powertech | Ireland | Electrical Components & Equipments | *** | 118174 |
07/08/2024 | Vertex | ecosio | Austria | System Integration, Enterprise Content Management (ECM) | ** | 117870 |
29/07/2024 | Wolters Kluwer | Isabel Accountancy Business | Belgium | Accounting software, Banking software / payment system | ** | 118044 |
25/07/2024 | Private group led by IdiCo | Lore Finance | Hauts-De-Seine | Software as a Service (SAAS), Real Estate Software | *** | 118191 |
23/07/2024 | Private group led by Société Générale Capital Partenaires | ABCD International & SOBAC CLOISONS | Essonne | Doors & Windows Manufacturers, Finishes and Fittings (F&F) | ** | 117966 |
19/07/2024 | Private group led by Ardian Expansion, BNP Paribas Développement | Diam International | Yvelines | Packaging & Containers, Marketing Services | * | 118782 |
18/07/2024 | Private group led by EMZ Partners, Bpifrance, Florac, Cerea Partners, Unigrains | LABELYS Group | Paris | Plastic Packaging Manufacturers | * | 117971 |
18/07/2024 | Private group led by Indigo | Delville Management | France | Interim Management | ** | 118304 |
18/07/2024 | Merck KGaA | Unity Semiconductor (UnitySC) | Isère | Measurement & Test Equipment, Equipement for Test & Measuring | * | 118059 |
17/07/2024 | Private group led by Geneo Capital Entrepreneur, Eximium, Bpifrance | Otego | Ain | Synthetic Fibers / Nonwoven fabrics | * | 118005 |
17/07/2024 | Private group led by Platina Partners | David & Davitec | Gironde | Finishes and Fittings (F&F), Insulation Work | ** | 118014 |
16/07/2024 | Private group led by PAI Partners, Bpifrance | Nutripure | Haute-Garonne | Food Complements | * | 118019 |
15/07/2024 | PSB Industries | Quadpack Industries | Spain | Glass Packaging Manufacturers, Paper Packaging Manufacturers, Plastic Packaging Manufacturers | *** | 118790 |
13/07/2024 | Private Group backed by Qualium Investissement | IMPC (Imagerie Médicale Paris Centre) SELAS | Paris | Medical Diagnostic Laboratory | * | 118432 |
03/07/2024 | Zehnder Group | Siber Zone | Spain | Building Materials & Fixtures, Heating, Ventilation and Air-Conditioning (HVAC), Heating Components & Equipments | ** | 117881 |
26/06/2024 | Private group led by Unigrains | Demarne Frères | Val-De-Marne | Sea Food, Food R&W | *** | 117999 |
25/06/2024 | Private group led by Parquest | Amelkis | Paris | Accounting software, Software as a Service (SAAS) | ** | 118089 |
20/06/2024 | Private Group backed by Cap Invest | Jérôme Dreyfuss | Paris | Leather Goods Manufacturers | * | 117381 |
20/06/2024 | Paralloy Group | Manoir Industries | Paris | Metals | * | 117662 |
19/06/2024 | Private group led by MBO+, Amundi Investissement | Groupe LT (Location Transport) | Yvelines | Construction Equipement Rental Services | * | 118526 |
17/06/2024 | Private Group led by Sodero | Ultimate Fishing | Morbihan | Sporting Goods, Sporting Goods Retailers | * | 117179 |
14/06/2024 | Private group led by Dentressangle Capital | Presto Engineering Group | Bouches-Du-Rhône | Semiconductors | * | 118066 |
13/06/2024 | Private group led by Ardian, Future French Champions | ALSTEF Group | Loiret | Industrial Machinery | * | 117188 |
11/06/2024 | Private group led by Intermediate Capital Group (ICG) | DGS | Italy | IT Consulting & Services | * | 117234 |
11/06/2024 | Alten | Worldgrid | Isère | IT Outsourcing, Industrial Software, Testing, Inspection and Certification services (TIC) | * | 117364 |
05/06/2024 | Rohto Pharmaceuticals Co | MoNo chem-pharm Produkte (Sigmapharm) | Austria | Pharmaceuticals | * | 117090 |
03/06/2024 | Innerio Heat Exchanger | ESTRA Automotive Systems Luxembourg | Luxembourg | Electrical Components & Equipments, Electronics / Electricity / Wiring | ** | 117112 |
03/06/2024 | Interpump Group | Alfa Valvole | Italy | Pumps & PVF | ** | 117278 |
30/05/2024 | Pattern | Umbria Verde Mattioli (UVM) | Italy | Clothing (manufacture) | ** | 117341 |
29/05/2024 | Private Group led by FrenchFood Capital (FFC) | Societe Huguenin | Val-De-Marne | Meat processing | * | 117426 |
21/05/2024 | Bekaert | Bexco | Belgium | Industrial Components, Ship manufacturers & suppliers | ** | 117303 |
21/05/2024 | Private Group led by Holnest | LDLC Arena (OL Vallée Arena) | Rhône | Real Estate, Event Organiser | ** | 117304 |
17/05/2024 | Audensiel | Omnilog | Hauts-De-Seine | IT Consulting | * | 116950 |
17/05/2024 | Private Group backed by 3i Group | Constellation | Hauts-De-Seine | IT Consulting & Services | * | 116976 |
15/05/2024 | Private group led by Trajan Investment Advisor | Airess | Val-D'Oise | Fire Protection Services | * | 116904 |
15/05/2024 | Private group led by FrenchFood Capital | Plantin | France | Delicatessen | * | 117020 |
14/05/2024 | Mitsubishi Materials | HC Starck (HCS) | Germany | Metals, Metal Recycling | * | 117196 |
14/05/2024 | Private group led by Bpifrance, Fonds France Nucléaire, CTICM | Efectis | Essonne | Testing, Inspection and Certification services (TIC) | *** | 117006 |
09/05/2024 | Fincantieri | Leonardo Underwater Armaments Systems | Italy | Aerospace & Defence | *** | 116868 |
08/05/2024 | Unigloves (Singapore) Pte | Unigloves Arzt- & Klinikbedarf Handelsgesellschaft | Germany | Specialised R&W, Medical Supplies | * | 116887 |
08/05/2024 | Viatel Technology Group | MJ Flood Technology (MJFT) | Ireland | IT Outsourcing, System Integration | * | 116996 |
04/05/2024 | AstroNova | MTEX New Solution | Portugal | Processing and Packaging Machinery | * | 116843 |
01/05/2024 | Private group led by Perwyn Advisors UK | Rubel & Ménasché | Paris | Jewelry Manufacturers | * | 117909 |
26/04/2024 | Hitachi | MA micro automation | Germany | Industrial Machinery, Measurement & Test Equipment, Equipement for Test & Measuring | * | 116788 |
26/04/2024 | Philia Medical Editions | APM International | Paris | Specialised Press | ** | 116908 |
25/04/2024 | Esteve Pharmaceuticals | HRA Pharma Rare Diseases | Hauts-De-Seine | Biomedical Research Laboratory | ** | 117378 |
24/04/2024 | Private group led by LT Capital | People with Fire in their Bellies (PFB) | Paris | Advertising Agency, Digital Marketing Agencies | * | 117173 |
23/04/2024 | Prevas | NMAC Group Oy (Enmac) | Finland | Engineering and Technical Services | *** | 116741 |
22/04/2024 | Descartes Systems Group | Aerospace Software Developments (ASD) | Ireland | Supply Chain Management (SCM), Transport Management System (TMS) | ** | 116775 |
19/04/2024 | Private group led by iXO Private Equity | SPT Maritime et Industriel (SPTMI) | Bouches-Du-Rhône | Construction Finishings | * | 116986 |
18/04/2024 | Infosys | in-tech | Germany | Industrial Software, Transport Management System (TMS) | ** | 117313 |
11/04/2024 | Private group led by Bridgepoint Group, Raise Investissement, Rives Croissance | Forward Global (ex-Avisa Partners) | Paris | IT Consulting, Competitive Intelligence & Market Studies | * | 116939 |
10/04/2024 | Private Group led by Idia Capital Investissement, Crédit Agricole Alpes Développement, Bpifrance and Garibaldi Participations | Cafés Folliet | Savoie | Coffee Roasting & Distribution | * | 117254 |
08/04/2024 | Private group led by 365 Capital | Hendi | Netherlands | Kitchen Equipment | * | 117875 |
04/04/2024 | OFA Group (Once For All) | Nalanda Global | Spain | Supply Chain Management (SCM) | * | 117359 |
03/04/2024 | Lakeland Industries | LHD Group Deutschland | Germany | Personal Protective Equipment (PPE) | ** | 117626 |
03/04/2024 | Freeland Group | Asenium | Hauts-De-Seine | Interim recruitment services, System Integration | * | 116962 |
Argos Mid-Market Index Breakdown
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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
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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.
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