Private equity funds continued to invest across Europe in 2016 with an 18 per cent annual growth rate in deals volume, according to data released by Clearwater International.
Clearwater’s latest Multiples Heatmap Analysis reveals that the growth in volume was accompanied by increased values, with PE funds paying on average a 10.2x EBITDA multiple in 2016, an increase from the average acquisition multiple of 10.0x in 2015.
Values peaked in the final quarter of last year at 10.6x overall average multiple.
TMT led the way in 2016 with an average multiple of 11.1x (peaking at 12.6x in Q4) replacing financial services, which saw a slump in multiples in Q3 following the referendum vote, as the hottest sector.
2016 also saw a surge in multiples paid in the CEE and Southern region as economic conditions recover and mature. The Nordic region also saw price inflation during the year, with healthcare and TMT sectors seeing high multiples, replacing UK/Eire as the hottest region with an average multiple of 10.6x.
The highest price inflation was seen in the EUR100-250 million deal range where average multiples peaked in Q4 at 13.0x.
