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 2024_____________________
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Argos Index® Mid-Market
Evolution of Euro Zone Mid-Market Private Company Prices - Quarterly Index carried out by Epsilon Research
Q2 2024: the Argos Index® stabilised at 8.9x EBITDA
Paris (France) – 18 July 2024 – 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 second quarter of 2024, acquisition prices for unlisted eurozone SMEs stabilised at 8.9x EBITDA. The index was supported by the slow recovery in M&A activity in the mid-market, resulting from the stabilisation in macroeconomic conditions, together with a fall in inflation and expectations that the ECB would cut rates before the Fed. However, economic and political uncertainties are preventing a meaningful upturn in M&A activity. In addition, financing conditions are still the toughest in a decade and the cost of capital is high, and these factors remain a drag on valuations.
Acquisition prices for unlisted European SMEs were stable at 8.9x EBITDA
- In the second quarter of 2024, the Argos Index® stabilised at 8.9x EBITDA, slightly above its 20-year average.
- Prices have stopped converging between the upper and lower segments of the mid-market. The mid-market appears increasingly polarised.
Index supported by a small increase in multiples paid by investment funds
- Multiples paid by investment funds were up 2% to 9.3x EBITDA.
- Multiples paid by strategic buyers were stable at 8.7x EBITDA, unchanged since the fourth quarter of 2023, while those in public equity markets were back to their December 2023 level.
Record proportion of transactions at extreme multiples
- 48% of transactions took place at extreme multiples, i.e. less than 7x or more than 15x EBITDA, which is the highest proportion since 2018.
- Transactions at multiples of less than 7x EBITDA accounted for 31% of the transactions analysed.
- The proportion of transactions at multiples of more than 15x EBITDA rose to 17%. Funds accounted for 60% of these transactions. There were a limited number of deals with multiples of more than 20x.
Gradual upturn in mid-market M&A volumes in the eurozone, in line with the global rebound
- Mid-market M&A activity in the eurozone was supported by the gradual recovery in LBOs, which were up 16% in volume terms and 28% in value terms in the first half of 2024 compared to the second half of 2023.
- The proportion of LBOs increased to 17% of the M&A market (in terms of the number of deals), up from 15% in 2023 as a whole.
> You can download the full study under "Data Publication" (left)
Argos Mid Market Index - Sample Analysis
| H2 2020 | H1 2021 | H2 2021 | H1 2022 | H2 2022 | H1 2023 | H2 2023 | H1 2024 | ||||||||||||||||||||||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Sample Size | |||||||||||||||||||||||||||||||||||||||||
| # deals retained for the index | 70 | 87 | 92 | 107 | 112 | 101 | 109 | 99 | |||||||||||||||||||||||||||||||||
| Average Equity Value (€m) | 143.6 | 165.0 | 133.9 | 109.6 | 142.5 | 119.7 | 112.5 | 116.4 | |||||||||||||||||||||||||||||||||
| Average N-1 sales (€m) | 100.1 | 112.9 | 106.6 | 120.0 | 123.8 | 112.8 | 127.0 | 112.4 | |||||||||||||||||||||||||||||||||
| N-1 EBITDA margin | 17% | 16% | 18% | 13% | 16% | 17% | 16% | 16% | |||||||||||||||||||||||||||||||||
| N-1 EBIT margin | 14% | 11% | 10% | ||||||||||||||||||||||||||||||||||||||
| Breakdown by size (equity value) | |||||||||||||||||||||||||||||||||||||||||
| [15-49] €m | 29% | 23% | 35% | 32% | 31% | 32% | 40% | 41% | |||||||||||||||||||||||||||||||||
| [50-99] €m | 16% | 15% | 22% | 31% | 25% | 24% | 24% | 19% | |||||||||||||||||||||||||||||||||
| [100-150] €m | 20% | 14% | 10% | 12% | 14% | 16% | 9% | 14% | |||||||||||||||||||||||||||||||||
| Breakdown by deal type | |||||||||||||||||||||||||||||||||||||||||
| Acquisition | 66% | 60% | 66% | 74% | 61% | 68% | 77% | 60% | |||||||||||||||||||||||||||||||||
| LBO | 34% | 40% | 34% | 26% | 39% | 32% | 23% | 40% | |||||||||||||||||||||||||||||||||
| Breakdown by country | |||||||||||||||||||||||||||||||||||||||||
| France | 33% | 48% | 37% | 30% | 46% | 35% | 30% | 51% | |||||||||||||||||||||||||||||||||
| Germany | 20% | 12% | 13% | 17% | 9% | 13% | 19% | 10% | |||||||||||||||||||||||||||||||||
| Italy | 9% | 7% | 13% | 18% | 14% | 14% | 18% | 15% | |||||||||||||||||||||||||||||||||
| Benelux | 13% | 15% | 16% | 10% | 14% | 8% | 7% | 8% | |||||||||||||||||||||||||||||||||
| Spain | 11% | 5% | 9% | 5% | 6% | 11% | 10% | 3% | |||||||||||||||||||||||||||||||||
| Other (euro zone) | 14% | 13% | 12% | 20% | 11% | 19% | 16% | 13% | |||||||||||||||||||||||||||||||||
| Breakdown by sector | |||||||||||||||||||||||||||||||||||||||||
| Energy and Raw Materials | 7% | 6% | 5% | 6% | 7% | 9% | 8% | 7% | |||||||||||||||||||||||||||||||||
| Building, Construction | 0% | 3% | 7% | 4% | 8% | 5% | 9% | 3% | |||||||||||||||||||||||||||||||||
| Industrial Equipment | 8% | 11% | 14% | 14% | 17% | 16% | 20% | 20% | |||||||||||||||||||||||||||||||||
| Consumer Products | 3% | 5% | 9% | 7% | 1% | 3% | 4% | 7% | |||||||||||||||||||||||||||||||||
| Agro-Food | 1% | 8% | 2% | 4% | 6% | 4% | 3% | 6% | |||||||||||||||||||||||||||||||||
| Healthcare-Pharmaceuticals | 27% | 18% | 11% | 5% | 11% | 10% | 7% | 10% | |||||||||||||||||||||||||||||||||
| Wholesale, Retail | 4% | 3% | 7% | 4% | 6% | 4% | 3% | 5% | |||||||||||||||||||||||||||||||||
| Transport | 3% | 5% | 3% | 6% | 7% | 5% | 4% | 5% | |||||||||||||||||||||||||||||||||
| TMT | 38% | 27% | 28% | 34% | 21% | 28% | 26% | 17% | |||||||||||||||||||||||||||||||||
| Business and Consumer Services | 9% | 14% | 14% | 16% | 16% | 16% | 16% | 20% | |||||||||||||||||||||||||||||||||
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
| Date | Acquirer | Target | Country | Industries | Valuation multiples | See details |
|---|---|---|---|---|---|---|
| 20/06/2024 | Private Group backed by Cap Invest | Jérôme Dreyfuss | Paris | Leather Goods Manufacturers | * | 117381 |
| 17/06/2024 | Private Group led by Sodero | Ultimate Fishing | Morbihan | Sporting Goods, Sporting Goods Retailers | * | 117179 |
| 13/06/2024 | Private group led by Ardian, Future French Champions | ALSTEF Group | Loiret | Industrial Machinery | * | 117188 |
| 11/06/2024 | Alten | Worldgrid | Isère | IT Outsourcing, Industrial Software, Testing, Inspection and Certification services (TIC) | * | 117364 |
| 11/06/2024 | Private group led by Intermediate Capital Group (ICG) | DGS | Italy | IT Consulting & Services | * | 117234 |
| 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 FrenchFood Capital | Plantin | France | Delicatessen | * | 117020 |
| 15/05/2024 | Private group led by Trajan Investment Advisor | Airess | Val-D'Oise | Fire Protection Services | * | 116904 |
| 14/05/2024 | Private group led by Bpifrance, Fonds France Nucléaire, CTICM | Efectis | Essonne | Testing, Inspection and Certification services (TIC) | *** | 117006 |
| 14/05/2024 | Mitsubishi Materials | HC Starck (HCS) | Germany | Metals, Metal Recycling | * | 117196 |
| 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 |
| 26/04/2024 | Philia Medical Editions | APM International | Paris | Specialised Press | ** | 116908 |
| 26/04/2024 | Hitachi | MA micro automation | Germany | Industrial Machinery, Measurement & Test Equipment, Equipement for Test & Measuring | * | 116788 |
| 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 |
| 04/04/2024 | OFA Group (Once For All) | Nalanda Global | Spain | Supply Chain Management (SCM) | * | 117359 |
| 03/04/2024 | Freeland Group | Asenium | Hauts-De-Seine | Interim recruitment services, System Integration | * | 116962 |
| 27/03/2024 | Private group led by Sagard | Primelis | Hauts-De-Seine | e-Marketing, Marketing Software | * | 116213 |
| 27/03/2024 | Private group led by Carvest, Siparex | Capron Podologie | Saône-Et-Loire | Medical Supplies | * | 116883 |
| 22/03/2024 | Private Group led by Abenex | Europa Group | Haute-Garonne | Event Organiser | * | 116927 |
| 15/03/2024 | Brady | Gravotech | Rhône | Machine Tools | ** | 116042 |
| 13/03/2024 | Advanced Medical Solutions Group | Peters Surgical | Hauts-De-Seine | Medical Equipment, Medical Supplies | *** | 116034 |
| 12/03/2024 | inTEST | Alfamation | Italy | Measurement & Test Equipment, Equipement for Test & Measuring | *** | 116017 |
| 11/03/2024 | Dominos Pizza Group | Shorecal | Ireland | Restaurants & Bars | ** | 116030 |
| 05/03/2024 | Twin Disc | Katsa | Finland | Machining Operations, Powertrain | ** | 115911 |
| 04/03/2024 | Halma | Rovers Medical Devices | Netherlands | Medical Equipment | ** | 115901 |
| 27/02/2024 | Private group led by Trevise Participations, Hivest Capital Partners, Talis | Videlio | Hauts-De-Seine | Audiovisual - Production & Distribution, System Integration | * | 117394 |
| 21/02/2024 | Axway Software | Sopra Banking Software | Haute-Savoie | Banking software / payment system | ** | 115879 |
| 16/02/2024 | Private group led by IK Partners, Capza | Eurofeu Company | Eure-Et-Loir | Industrial Machinery, Fire Protection Services | ** | 116078 |
| 12/02/2024 | Private Group Led by O2 Capital Partners | Bribus | Netherlands | Kitchen Equipment | ** | 115950 |
| 08/02/2024 | AcadeMedia | Touhula Leikki (Touhula Päiväkodit) | Finland | Day-care centers | ** | 115863 |
| 07/02/2024 | Private group led by Exponent Private Equity | Chanelle Pharma | Ireland | Pharmaceuticals, Veterinary Pharmaceuticals | ** | 116340 |
| 05/02/2024 | Sonae SGPS | BCF Life Sciences | Morbihan | Food Complements | ** | 116432 |
| 01/02/2024 | Ingersoll Rand | Friulair | Italy | Pumps & PVF | ** | 115685 |
| 31/01/2024 | Amadeus IT Group | Vision-Box - Solucoes De Visao Por Computador | Portugal | Electronic Security Systems, Security Software | *** | 116022 |
| 31/01/2024 | Private group led by Arterris | Occipain (La Panetière) | Aveyron | Bakery Products | * | 116796 |
| 23/01/2024 | TotalEnergies | Kyon Energy Solutions | Germany | Electrical Components & Equipments, CleanTech - Power Storage | * | 116956 |
| 19/01/2024 | Soudal Holding | Durante Adesivi | Italy | Specialty Chemicals | * | 116568 |
| 16/01/2024 | Private group led by Andera Acto, Fonds France Nucléaire, Société Générale Capital Partenaires | Groupe ADF | Bouches-Du-Rhône | Engineering and Technology Consulting | ** | 116240 |
| 15/01/2024 | John Cockerill | Arquus | Yvelines | Aerospace & Defence, Special Purpose Vehicles & Equipment | * | 115933 |
| 12/01/2024 | Yamaha Motor Co | Torqeedo | Germany | Electrical Components & Equipments, Ship manufacturers & suppliers | * | 116720 |
| 10/01/2024 | Oxford Instruments | First Light Imaging | Bouches-Du-Rhône | Electronic Equipment, Optoelectronics | ** | 115821 |
| 10/01/2024 | DDC Enterprise | GL Industry | Italy | Canned, Frozen and Cooked Food | ** | 115984 |
| 04/01/2024 | L'Occitane International | Dr. Vranjes Firenze | Italy | Personal Products, Cosmetics & Perfumes | ** | 115896 |
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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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
