August 21, 2018
Valuations and debt levels remained aloft in the second quarter of 2018, according to GF Data’s just-released August report. At the same time, the data tracking firm saw a drop in completed deal volume that defies the general sense of an enduring red-hot market.
July 19, 2018
Still expensive. Valuations dropped in the first quarter but were still much higher than the historical average.
February 20, 2018
The middle-market model has fallen victim to its own success in some ways over the last few years. As investing in small, growing companies has proven lucrative, more and more players have entered the fray. These days, mid-market private equity firms face competition from bulge bracket PE firms heading downstream, large corporations looking to accelerate growth, fundless sponsors doing one-off deals and family wealth offices bypassing PE firms to invest directly. Fundraising has been robust, which means there’s a lot of money chasing the best deals. That, in turn, has driven up prices. To prevail, many PE firms are re-calibrating their approaches, often by lowering expectations for returns, lengthening hold times and accelerating the closing process.
December 19, 2017
There’s no question that deal valuations are at a post-recession peak, yet many middle-market deal-makers suspect prices are even higher than the data suggest, in large part because of the characteristics of the businesses they’re buying, such as size and industry niche.
December 11, 2017
GF Data has recorded average valuations on private middle-market transaction surging into record territory over the course of this year, yet we continue to hear from subscribers and other deal professionals that these unprecedented multiples seem low in comparison to their own market experience.