Apr 12, 2016
GF Data’s semi-annual view of trends in key deal terms other than price – indemnification cap, escrow/hold back and basket shows that the “seller’s market” conditions driving valuations continue to affect key deal terms as well.
Jan 22, 2016
Prices paid for lower middle-market targets averaged 9.1 times Ebitda, up from 7.8 in 2014, says GF Data’s Graeme Frazier.
Soaring valuations in today’s frothy M&A environment have made it difficult for the average private equity firm to win deals. Even when a private equity firm is able to buy a company, the margin to create value is thin, due to the high price paid to acquire the company in the first place. According to S&P Capital IQ’s LCD unit, U.S. buyout firms paid an average of 10.3 times Ebitda for their purchases in 2015. That’s surpasses the 9.7 times Ebtida seen in 2007.
Nov 25, 2015
Midsize companies commanded higher valuations in the third quarter, though the number of deals was down, according to GF Data Resources, a research firm that tracks the middle market.
Jul 29, 2015
Overall, the market is very robust across the board. The Southeast is as healthy, if not healthier, than any other market in the country.
Feb 5, 2015
A question raised with increasing frequency this past year is: Are valuations of middle market businesses becoming commoditized? That is, if you have a business of a given size and industry, is it more likely now than at some point in the past to be valued within a narrower and more easily predicted range, often expressed as multiples of cash flow?
Sep 2, 2014
The No. 1 issue facing private equity firms and strategic buyers today is: Where are the deals? There are very few deals out there, and those that are in the market are overpriced or mediocre and may still be overpriced.