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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Argos Index® Mid-Market
Evolution of Euro Zone Mid-Market Private Company Prices - Quarterly Index carried out by Epsilon Research
Q4 2023: Argos Index® stabilised at 9.0x EBITDA
Paris (France) – 7 February 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 2023, acquisition prices for unlisted eurozone SMEs fell by 10%. Adverse economic conditions—inflation, rising interest rates, slowing growth and geopolitical tensions—led to lower prices and activity levels in the M&A market. In the fourth quarter, however, M&A prices and activity stabilised as inflation and long-term interest rates fell.
Acquisition prices for unlisted European SMEs stabilised at 9.0x EBITDA.
- In the fourth quarter of 2023, the Argos Index® stabilised at 9.0x EBITDA, after falling to 9.1x EBITDA in the previous quarter. The index is now close to its 20-year average.
- Prices are continuing to converge between market segments. The differential between the upper and lower segments of the mid-market has hit a low of 1.5x EBITDA.
Further decline in prices paid by companies and stabilisation in prices paid by funds.
- Multiples paid by large companies fell by a further 4% in the fourth quarter to 8.7x EBITDA, despite the rally in equity markets. Companies seeking transformative acquisitions and low-priced buying opportunities continued to account for a large proportion of M&A deals (85%).
- Multiples paid by funds remained stable at 9.4x EBITDA despite high borrowing rates, due to the record amount of available capital.
High proportion of transactions below 7x EBITDA.
- 40% of transactions took place at extreme multiples, i.e., less than 7x or more than 15x EBITDA. Although the percentage fell in the fourth quarter, it remained high.
- 28% of transactions took place at multiples of less than 7x EBITDA, a very high proportion that highlights the downward pressure on prices.
- The proportion of transactions at more than 15x EBITDA continued to fall to 12%.
Resilient activity levels in eurozone mid-market M&A.
- In the fourth quarter of 2023, eurozone M&A activity—in terms of both the number deals and their total value—moved back to second-quarter levels, while the number of mid-market LBO deals rebounded by 20%.
- That upturn took place against the background of a global M&A market in which the value of deals fell by 17% in 2023 to a 10-year low, with the sharpest drop taking place in Europe (-28%). Eurozone mid-market M&A activity also declined (-10% in terms of the number of deals and -25% in terms of their total value), while mid-market LBO activity followed the same trend (-12% and -30% respectively).
> 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 | T3 2023 | H2 2023 | ||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Sample Size | |||||||||||||||||||||||||||||||||||||||||
# deals retained for the index | 70 | 87 | 92 | 107 | 112 | 101 | 106 | 109 | |||||||||||||||||||||||||||||||||
Average Equity Value (€m) | 143.6 | 165.0 | 133.9 | 109.6 | 142.5 | 119.7 | 121.7 | 112.5 | |||||||||||||||||||||||||||||||||
Average N-1 sales (€m) | 100.1 | 112.9 | 106.6 | 120.0 | 123.8 | 112.8 | 109.1 | 127.0 | |||||||||||||||||||||||||||||||||
N-1 EBITDA margin | 17% | 16% | 18% | 13% | 16% | 17% | 17% | 16% | |||||||||||||||||||||||||||||||||
N-1 EBIT margin | 14% | 13% | 11% | ||||||||||||||||||||||||||||||||||||||
Breakdown by size (equity value) | |||||||||||||||||||||||||||||||||||||||||
[15-49] €m | 29% | 23% | 35% | 32% | 31% | 32% | 31% | 40% | |||||||||||||||||||||||||||||||||
[50-99] €m | 16% | 15% | 22% | 31% | 25% | 24% | 23% | 24% | |||||||||||||||||||||||||||||||||
[100-150] €m | 20% | 14% | 10% | 12% | 14% | 16% | 17% | 9% | |||||||||||||||||||||||||||||||||
Breakdown by deal type | |||||||||||||||||||||||||||||||||||||||||
Acquisition | 66% | 60% | 66% | 74% | 61% | 68% | 79% | 77% | |||||||||||||||||||||||||||||||||
LBO | 34% | 40% | 34% | 26% | 39% | 32% | 21% | 23% | |||||||||||||||||||||||||||||||||
Breakdown by country | |||||||||||||||||||||||||||||||||||||||||
France | 33% | 48% | 37% | 30% | 46% | 35% | 30% | 30% | |||||||||||||||||||||||||||||||||
Germany | 20% | 12% | 13% | 17% | 9% | 13% | 19% | 19% | |||||||||||||||||||||||||||||||||
Italy | 9% | 7% | 13% | 18% | 14% | 14% | 17% | 18% | |||||||||||||||||||||||||||||||||
Benelux | 13% | 15% | 16% | 10% | 14% | 8% | 9% | 7% | |||||||||||||||||||||||||||||||||
Spain | 11% | 5% | 9% | 5% | 6% | 11% | 11% | 10% | |||||||||||||||||||||||||||||||||
Other (euro zone) | 14% | 13% | 12% | 20% | 11% | 19% | 14% | 16% | |||||||||||||||||||||||||||||||||
Breakdown by sector | |||||||||||||||||||||||||||||||||||||||||
Energy and Raw Materials | 7% | 6% | 5% | 6% | 7% | 9% | 9% | 8% | |||||||||||||||||||||||||||||||||
Building, Construction | 0% | 3% | 7% | 4% | 8% | 5% | 8% | 9% | |||||||||||||||||||||||||||||||||
Industrial Equipment | 8% | 11% | 14% | 14% | 17% | 16% | 17% | 20% | |||||||||||||||||||||||||||||||||
Consumer Products | 3% | 5% | 9% | 7% | 1% | 3% | 5% | 4% | |||||||||||||||||||||||||||||||||
Agro-Food | 1% | 8% | 2% | 4% | 6% | 4% | 3% | 3% | |||||||||||||||||||||||||||||||||
Healthcare-Pharmaceuticals | 27% | 18% | 11% | 5% | 11% | 10% | 12% | 7% | |||||||||||||||||||||||||||||||||
Wholesale, Retail | 4% | 3% | 7% | 4% | 6% | 4% | 5% | 3% | |||||||||||||||||||||||||||||||||
Transport | 3% | 5% | 3% | 6% | 7% | 5% | 2% | 4% | |||||||||||||||||||||||||||||||||
TMT | 38% | 27% | 28% | 34% | 21% | 28% | 23% | 26% | |||||||||||||||||||||||||||||||||
Business and Consumer Services | 9% | 14% | 14% | 16% | 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 - H2 2023
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Date | Acquirer | Target | Country | Industries | Valuation multiples | See details |
---|---|---|---|---|---|---|
21/12/2023 | Recticel | Rex Panels & Profiles | Belgium | Building Materials & Fixtures | ** | 115110 |
14/12/2023 | Private group led by AXIO Capital | SIMP | Seine-Maritime | Doors & Windows Manufacturers | * | 115172 |
14/12/2023 | Serco Group | European Homecare | Germany | Other Business Services, Business Process Outsourcing (BPO) | ** | 115062 |
12/12/2023 | Tobii | FotoNation | Ireland | Transport Management System (TMS) | *** | 115207 |
11/12/2023 | Private group led by BNP Paribas Développement, Sénevé Capital, Unigrains | Loyez Woessen | Nord | Dairy Products & Ice Creams | * | 115219 |
07/12/2023 | Sekisui Jushi | WEMAS Absperrtechnik | Germany | Plastics Engineering , Plastic Packaging Manufacturers | ** | 115034 |
01/12/2023 | Fincantieri | Remazel Engineering | Italy | Electronic Equipment, Special Purpose Vehicles & Equipment | *** | 115050 |
29/11/2023 | Stille | Fehling Instruments | Germany | Medical Equipment | *** | 114894 |
27/11/2023 | Private Group led by Towerbrook | EFESO Management Consultants | Paris | Management Software, Software as a Service (SAAS), Business and Management Consultancy | ** | 114884 |
27/11/2023 | NGE (New Generations of Entrepreneurs) | Sade-Compagnie Générale de Travaux d’Hydraulique(SADE-CGTH) | Paris | Heavy / Civil Construction | *** | 114963 |
14/11/2023 | Private Group backed by IRD, Bpifrance, Rives Croissance, Socadif | Iagona | Hauts-De-Seine | Integrated software, Electronic Equipment (for corporates) | * | 114865 |
14/11/2023 | DCC | PROGAS | Germany | Utilities | ** | 115238 |
13/11/2023 | Midwich Group | prodyTel Distribution | Germany | Telecom Products Retail | *** | 114921 |
10/11/2023 | Private Group backed by Siparex | Distriwatt | Gironde | e-commerce B2B, Electrical Product (retail) | * | 114899 |
09/11/2023 | RSM UK | RSM Ireland Business Advisory | Ireland | Tax and Legal Consultancy | * | 115005 |
08/11/2023 | Suzhou Delphi Laser Co | Corning Laser Technologies (CLT) | Germany | Electronic Equipment (for corporates), Machine Tools | ** | 114956 |
07/11/2023 | Gaming Innovation Group | KaFe Rocks (Time2Play Media) | Malta | Online Gambling | * | 114728 |
03/11/2023 | Public Power Corporation | Kotsovolos (Dixons South East Europe AEVE) | Greece | Diversified R&W | *** | 114849 |
31/10/2023 | Greif | Ipackchem Group | Paris | Plastic Packaging Manufacturers | *** | 114794 |
27/10/2023 | Terrena | Tipiak | Loire-Atlantique | Bakery Products, Canned, Frozen and Cooked Food | *** | 114682 |
23/10/2023 | LloydsPharmacy Ireland | Kalamunda | Ireland | Drugs Retailers | * | 115321 |
20/10/2023 | Samvardhana Motherson Automotive Systems Group (Motherson) | AD Industries (ADI) | Corrèze | Machining Operations, Aircraft Parts Suppliers | ** | 114541 |
17/10/2023 | Unieuro | Covercare | Italy | Specialized Consumer Services, Heating, Ventilation and Air-Conditioning (HVAC) | *** | 114557 |
10/10/2023 | Hamilton Thorne | Gynetics | Belgium | Medical Equipment | *** | 114949 |
09/10/2023 | Nolet Group | Lucas Bols | Netherlands | Distilled Spirits & Liqueurs | *** | 114968 |
06/10/2023 | Climb Global Solutions | DataSolutions | Ireland | IT Supply Chain Services | * | 115042 |
04/10/2023 | PTC | pure-systems | Germany | Management Software | * | 115197 |
04/10/2023 | Ingersoll Rand | Oxywise | Slovakia | Industrial Machinery, Pumps & PVF | * | 114816 |
03/10/2023 | RHI Magnesita | Preiss-Daimler Group refractory business (P-D Refractories) | Germany | Mining | * | 114722 |
03/10/2023 | Private group led by Hivest Capital | Marchante | Savoie | Industrial Machinery | * | 115178 |
01/10/2023 | Private group led by Crédit Mutuel Equity | Groupe DFM | Val-De-Marne | IT Outsourcing, IT & Telecom Products (retail), Printing | *** | 115244 |
01/10/2023 | Abu Dhabi Ports Company PJSC | Sese Autologistics | Spain | Land transportation | *** | 114751 |
28/09/2023 | Private Group backed by IDIA Capital Investissement, Bpifrance and IRD Invest | Alive Group | Nord | Event Organiser | * | 115016 |
26/09/2023 | Private group led by UI Investissement and Esfin Gestion | Millenium | Essonne | Industrial Cleaning | ** | 115069 |
25/09/2023 | Enovis | Limacorporate | Italy | Medical Implants or Prostheses Manufacturers | *** | 115277 |
22/09/2023 | Grupo Lamosa | Baldocer | Spain | Building Materials & Fixtures | ** | 115119 |
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 |
12/09/2023 | Private group led by Eurazeo | 2B Services Innovations | Isère | Waste & Disposal Services | * | 114738 |
12/09/2023 | Private group led by Ibla Capital | Intermap Italia | Italy | Plastics Engineering | ** | 114744 |
31/08/2023 | Johnson Service Group | Harkglade | Ireland | Facilities Management | ** | 113739 |
29/08/2023 | Daihen | Lorch Schweißtechnik | Germany | Industrial Machinery | ** | 115080 |
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 |
17/08/2023 | Alinea (Neomarché) | Zodio (Objets & Cie) | Nord | Home Improvement R&W | * | 115270 |
11/08/2023 | Sintokogio | Elastikos (France) | Isère | Steel | *** | 115092 |
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 |
28/07/2023 | Elos Medtech | Klingel | Germany | Medical Equipment, Machining Operations | ** | 115184 |
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 |
21/07/2023 | Masco | Sauna360 Group | Finland | Durable Household Products | *** | 115105 |
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 |
10/07/2023 | Private Group led by Hg | Nomadia Group | Val-De-Marne | Software as a Service (SAAS), Mobile Software, Human Resource Management (HRM) | * | 113778 |
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 |
01/07/2023 | Bechtle | Apixit (formerly DCI-Rétis) | Essonne | System Integration | * | 115098 |
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