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 2023_____________________
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Argos Index® Mid-Market
Evolution of Euro Zone Mid-Market Private Company Prices - Quarterly Index carried out by Epsilon Research
Q1 2023: limited decline of the Argos Index® to 9,7x l’EBITDA
Paris (France) – 24 May 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.
Acquisition prices of unlisted European SMEs continue their slow decline.
- The Argos Index® recorded a limited decline of 2% to 9.7x EBITDA in the first quarter of 2023, reaching its lowest level since the first half of 2020.
- As is generally seen in times of crisis, the market is more polarised. The spread between upper mid-market and lower mid-market multiples remains at a record 5.0x EBITDA, while the share of multiples below 7x EBITDA and above 15x EBITDA has increased, representing 38% of transactions.
The prices paid by both private equity funds and strategic buyers are down slightly.
- The multiples paid by private equity funds show a limited decline of 1%, to 10.4x EBITDA, whereas activity is down 9% by volume and 23% by value.
- Multiples paid by strategic buyers show a more significant fall of 6% to 9.2x EBITDA.
The share of transactions below 7x EBITDA and above 15x EBITDA has increased.
- The share of transactions > 15x EBITDA represents 20% of analysed transactions , an increase compared to the quarters of 2022.
- The share of transactions < 7x EBITDA represents 18% of the sample, in line with the level seen in the fourth quarter of 2022.
European mid-market M&A activity falls to lowest level by value.
This quarter, mid-market M&A activity:
- continued to decline by value, with a fall of -9%, reaching its lowest level since the second quarter of 2020, at the peak of the Covid-19 crisis. This decline in the first quarter of 2023 is in line with the 63% annual decline in the European M&A market. It confirms the downturn in the M&A market cycle.
- is down 13% in terms of the number of transactions, driven by the 15% fall in the upper mid-market.
- is driven by strategic buyers. As in the previous quarter, the investment fund share remains below 15%, compared to 20% in 2021.
> You can download the press release under "Data Publication" (left)
Argos Mid Market Index - Sample Analysis
| H2 2019 | H1 2020 | H2 2020 | H1 2021 | H2 2021 | H1 2022 | H2 2022 | Q1 2023 | ||||||||||||||||||||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Sample Size | |||||||||||||||||||||||||||||||||||||||
| # deals retained for the index | 101 | 60 | 70 | 87 | 92 | 107 | 112 | 98 | |||||||||||||||||||||||||||||||
| Average Equity Value (€m) | 123.4 | 117.7 | 143.6 | 165.0 | 133.9 | 109.6 | 142.5 | 107.0 | |||||||||||||||||||||||||||||||
| Average N-1 sales (€m) | 112.0 | 89.7 | 100.1 | 112.9 | 106.6 | 120.0 | 123.8 | 89.6 | |||||||||||||||||||||||||||||||
| N-1 EBITDA margin | 15% | 19% | 17% | 16% | 18% | 13% | 16% | 14% | |||||||||||||||||||||||||||||||
| N-1 EBIT margin | 12% | 10% | |||||||||||||||||||||||||||||||||||||
| Breakdown by size (equity value) | |||||||||||||||||||||||||||||||||||||||
| [15-49] €m | 37% | 35% | 29% | 23% | 35% | 32% | 31% | 42% | |||||||||||||||||||||||||||||||
| [50-99] €m | 27% | 25% | 16% | 15% | 22% | 31% | 25% | 26% | |||||||||||||||||||||||||||||||
| [100-150] €m | 6% | 13% | 20% | 14% | 10% | 12% | 14% | 9% | |||||||||||||||||||||||||||||||
| Breakdown by deal type | |||||||||||||||||||||||||||||||||||||||
| Acquisition | 73% | 65% | 66% | 60% | 66% | 74% | 61% | 71% | |||||||||||||||||||||||||||||||
| LBO | 27% | 35% | 34% | 40% | 34% | 26% | 39% | 29% | |||||||||||||||||||||||||||||||
| Breakdown by country | |||||||||||||||||||||||||||||||||||||||
| France | 46% | 48% | 33% | 48% | 37% | 30% | 46% | 31% | |||||||||||||||||||||||||||||||
| Germany | 14% | 17% | 20% | 12% | 13% | 17% | 9% | 16% | |||||||||||||||||||||||||||||||
| Italy | 10% | 8% | 9% | 7% | 13% | 18% | 14% | 18% | |||||||||||||||||||||||||||||||
| Benelux | 14% | 8% | 13% | 15% | 16% | 10% | 14% | 7% | |||||||||||||||||||||||||||||||
| Spain | 5% | 7% | 11% | 5% | 9% | 5% | 6% | 9% | |||||||||||||||||||||||||||||||
| Other (euro zone) | 11% | 12% | 14% | 13% | 12% | 20% | 11% | 19% | |||||||||||||||||||||||||||||||
| Breakdown by sector | |||||||||||||||||||||||||||||||||||||||
| Energy and Raw Materials | 11% | 9% | 7% | 6% | 5% | 6% | 7% | 6% | |||||||||||||||||||||||||||||||
| Building, Construction | 2% | 0% | 0% | 3% | 7% | 4% | 8% | 6% | |||||||||||||||||||||||||||||||
| Industrial Equipment | 11% | 4% | 8% | 11% | 14% | 14% | 17% | 12% | |||||||||||||||||||||||||||||||
| Consumer Products | 1% | 6% | 3% | 5% | 9% | 7% | 1% | 4% | |||||||||||||||||||||||||||||||
| Agro-Food | 10% | 4% | 1% | 8% | 2% | 4% | 6% | 10% | |||||||||||||||||||||||||||||||
| Healthcare-Pharmaceuticals | 8% | 12% | 27% | 18% | 11% | 5% | 11% | 6% | |||||||||||||||||||||||||||||||
| Wholesale, Retail | 8% | 4% | 4% | 3% | 7% | 4% | 6% | 4% | |||||||||||||||||||||||||||||||
| Transport | 6% | 6% | 3% | 5% | 3% | 6% | 7% | 7% | |||||||||||||||||||||||||||||||
| TMT | 29% | 39% | 38% | 27% | 28% | 34% | 21% | 30% | |||||||||||||||||||||||||||||||
| Business and Consumer Services | 14% | 16% | 9% | 14% | 14% | 16% | 16% | 15% | |||||||||||||||||||||||||||||||
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 - Q1 2023
| Date | Acquirer | Target | Country | Industries | Valuation multiples | See details |
|---|---|---|---|---|---|---|
| 28/03/2023 | Halma | FirePro Systems | Cyprus | Electronic Security Systems, Electronic Security Systems | *** | 112204 |
| 24/03/2023 | General de Alquiler de Maquinaria | Carretillas Mayor | Spain | Material Handling Equipment Rental Services | * | 112280 |
| 21/03/2023 | Private group led by Mérieux Equity Partners & Siparex & Normandie Participations | Piercan | Calvados | Plastics Engineering | * | 112026 |
| 16/03/2023 | Private group led by Adagia Partners and Bpifrance | Adhetec | Hautes-Pyrénées | Plastics Engineering , Aircraft Parts Suppliers | ** | 111758 |
| 28/02/2023 | International Tractors | Thaler | Germany | Agricultural & Construction Equipment | * | 112168 |
| 27/02/2023 | Targa Telematics | Viasat Group | Italy | Telecommunications equipment, Mobile & Wireless Telecom Services | * | 111765 |
| 16/02/2023 | Private group les by PAI Partners | La Compagnie des Desserts | Aude | Canned, Frozen and Cooked Food | * | 112059 |
| 13/02/2023 | MACIF | Mondial Pare-Brise | France | Automotive Services | ** | 112249 |
| 07/02/2023 | Private Group led by Andera Partners | NG Travel | Paris | Travel & Tourism, Online Travel Agencies | * | 112254 |
| 07/02/2023 | Richter Gedeon Vegyeszeti Gyar Nyrt | OC Distributors | Ireland | Pharmaceuticals | * | 112238 |
| 02/02/2023 | MACOM Technology Solutions | Ommic | Val-De-Marne | Semiconductors | ** | 112209 |
| 02/02/2023 | Investindustrial | Procon Pumps (Standex Ireland) | Ireland | Pumps & PVF | *** | 112214 |
| 02/02/2023 | Private Group led by HLD | Groupe Infodis | Val-D'Oise | IT Consulting, System Integration | ** | 112221 |
| 01/02/2023 | The Navigator Company | Gomà-Camps Consumer | Spain | Paper Industries | ** | 112239 |
| 31/01/2023 | TriMas | Aarts Packaging | Netherlands | Plastics Engineering , Plastic Packaging Manufacturers | *** | 111703 |
| 27/01/2023 | Private group led by Graham Partners | Taoglas Group | Ireland | Telecommunications equipment | * | 112007 |
| 19/01/2023 | Exceet Group | Apex Nova | Germany | CleanTech - Renewable Energy | ** | 112172 |
| 12/01/2023 | Sofrilog | Transports N.J.S Faramia | Bouches-Du-Rhône | Temperature Controlled Transport | * | 111893 |
| 11/01/2023 | IRCA | Sweet Ingredients Portfolio of Kerry Group | Ireland | Bakery Products, Confectionery | ** | 111287 |
| 05/01/2023 | Private group led by Turenne Capital, IDIA Capital Investissement, BNP Paribas Développement, Sofilaro, Siparex MidCap | Groupe Comptoir Rhodanien | Drôme | Market Gardening | ** | 112122 |
| 31/12/2022 | FIT Hon Teng | Prettl SWH | Germany | Electronic Equipment (for corporates), Electronics / Electricity / Wiring | *** | 112188 |
| 23/12/2022 | Private group led by Caisse Régionale du Crédit Agricole Mutuel de l’Anjou et du Maine, Unexo Capital | Hypérion Développement (ADX) | Yvelines | Construction Finishings, Testing, Inspection and Certification services (TIC) | ** | 111970 |
| 23/12/2022 | Fluidra | MERANUS Gesellschaft fur Schwimmbad- und Freizeitausrustungen | Germany | Specialised R&W, Sporting Goods | *** | 111125 |
| 22/12/2022 | Private group backek by Capza | Stanwell Consulting | Paris | Business and Management Consultancy | * | 112038 |
| 22/12/2022 | Frutas Naturales (The Natural Fruit Company) | Bollo International Fruits | Spain | Market Gardening, Fruits and Vegetables R&W | * | 111236 |
| 20/12/2022 | Fielmann | Medop | Ibervision Servicios Opticos | Elaboria | Spain | Specialised R&W, Medical Supplies, Eyewear (retail) | * | 111182 |
| 20/12/2022 | Elior Group | Derichebourg Multiservices | Paris | Facilities Management | *** | 110978 |
| 20/12/2022 | Private group led by Adaxtra Capital | Teolia Consulting | Paris | IT Consulting & Services | ** | 112109 |
| 18/12/2022 | Salcef Group | Francesco Ventura Costruzioni Ferroviarie | Italy | Heavy / Civil Construction | ** | 111145 |
| 15/12/2022 | Gaming Innovation Group (GIG) | AskGamblers | Malta | Online Gaming | ** | 111166 |
| 15/12/2022 | Adisseo France | Nor-Feed | Maine-Et-Loire | Food Complements, Animal Feed | * | 111875 |
| 13/12/2022 | AS Maag Grupp | HKScan - Baltic countries | Estonia | Meat processing | ** | 111173 |
| 02/12/2022 | Comer Industries | Benevelli Electric Powertrain Solutions | Sitem | Italy | Drivetrain | ** | 111194 |
| 25/11/2022 | Shandong Weifang Rainbow Chemical Co. | Exclusivas Sarabia | Spain | Fertilizers & Pesticides - Manufacturers | ** | 111189 |
| 23/11/2022 | Private Group led by Eurazeo | NeoXam | Paris | Financial Markets software | * | 110943 |
| 22/11/2022 | Italian Wine Brands | Barbanera | Italy | Wine Production - Italy | *** | 111140 |
| 21/11/2022 | UniPhar | BModesto | Netherlands | Drugs Retailers | ** | 110851 |
| 17/11/2022 | Panasonic | Air-Conditioning Business of Systemair | Germany | Heating, Ventilation and Air-Conditioning (HVAC) | * | 111303 |
| 16/11/2022 | Eagle Eye Solutions Group | Untie Nots | Paris | e-Marketing, Software as a Service (SAAS), Marketing Software | *** | 110920 |
| 31/10/2022 | NextNav | Nestwave | Hauts-De-Seine | Telecommunications equipment, Telecom infrastructure Softwares | ** | 111056 |
| 27/10/2022 | Camplify | PaulCamper | Germany | Online Classified Ads Providers, Peer to Peer | * | 110740 |
| 25/10/2022 | Private group led by FrenchFood Capital, Unexo | Difagri | Vendée | Food Complements, Animal Feed | * | 112160 |
| 24/10/2022 | Mediahuis Ireland | Webzone (Carzone) | Ireland | Online Classified Ads Providers, e-Marketplace | *** | 110785 |
| 21/10/2022 | Private Group led by The Carlyle Group | Grupo Garnica Plywood | Spain | Building Materials & Fixtures | * | 110934 |
| 21/10/2022 | Private group led by Initiative & Finance | Volta Croissance (Offibat) | Essonne | Construction Finishings | * | 112072 |
| 14/10/2022 | Apleona Ireland | Acacia Facilities | Ireland | Facilities Management | * | 110960 |
| 11/10/2022 | Refresco Group | Avandis Group | Netherlands | Soft Drinks, Glass Packaging Manufacturers, Metal Packaging Manufacturers | *** | 110399 |
| 10/10/2022 | Private group led by Jadel | Gagnepark | Rhône | Solar Service Provider, Heavy / Civil Construction | ** | 110767 |
| 09/10/2022 | Private group led Corten Capital | Ekco Cloud Holdings DAC | Ireland | Security Software | ** | 111048 |
| 06/10/2022 | Private Group led by Geneo Capital Entrepreneur | i-run | Haute-Garonne | e-commerce (B2C), Sportswear | *** | 111008 |
| 05/10/2022 | Arcadis | DPS Engineering (now Arcadis DPS Group) | Ireland | Engineering and Technology Consulting | *** | 110801 |
| 04/10/2022 | Halma | Weetech | Germany | Equipement for Test & Measuring | *** | 110368 |
| 03/10/2022 | Redwire LLC | QinetiQ Space (now Redwire Space) | Belgium | Aircraft Parts Suppliers | ** | 110751 |
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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> 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.
|
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
