These charts analyse the quarterly multiples by sector for the year ending 31stDecember 2017.
TMT sector continues to be the hottest in Europe, despite seeing a drop in multiples to only 10.3x in Q4 2017 following steadily increasing prices through the first three quarters of the year.
Other than Industrials and Chemicals, all sectors have seen a fall in multiples between Q2 and Q4 2017.
The Industrials and Chemicals sector has seen stable pricing through the year at around its 2017 average of 10.2x, but has also seen higher price volatility than historically.
Automotive and Financial Services quarterly average multiples deflated over the year and reached 6.7x and 9.4x respectively in Q4 2017. However, high multiples in the first half of the year drove an annual average for Financial Services businesses of 10.7x, a 0.6 increase when compared to 2016.
Final quarter Business Services prices returned to levels seen in the first quarter of the year, below the annual average, after seeing high valuations in the middle of 2017.
The Consumer sector saw average prices drop year on year from 10.5x in 2016 to 10.1x in 2017. Multiples paid by PE funds in Benelux, France and the Southern regions had the highest impact on this trend.
During the year prices were most volatile in the Industrials and Chemicals, Real Estate and TMT sectors.