Average multiples by sector by region

Multiples Heatmap Q1 2018 Sector Region
  • This chart analyses the average multiples by sector and region for the six quarters ended 31st March 2018.
  • TMT remains the hottest sector across Europe over the period, particularly in the DACH and Nordic regions where values reached 12.2x and 11.7x respectively, with best value opportunities seen in France at 9.9x.
  • Financial Services also saw high average multiples of 10.8x across the period, with France, Southern and Nordic regions all seeing high prices being paid.
  • Healthcare has seen double digit multiples across all regions, with CEE and France experiencing high pricing and best value in UK/Eire at 10.0x.
  • Consumer sector is consistent across all regions around the average of 10.3x, other than Benelux and France where best value for the sector has been seen at 9.4x and 9.7x respectively.
  • Business Services and Food and Beverage sectors saw high valuations in the Nordic region with significantly better value opportunities in the CEE region.
  • Lowest multiples continue to be seen in the Automotive sector with a six-quarter average of 8.9x across the regions and double digit multiples only seen in France and Nordic regions.
  • Nordic region continues to be the hottest region over the period driven by high multiple deals in the TMT and Business Services sectors. Financial Services and Food and Beverage targets also attracted high prices in the region but accounted for a lower proportion of deals.
  • Values in the Benelux, DACH and UK/Eire regions remain closely clustered together around the European average multiple of 10.3x.
  • Southern region six-quarter average dropped below 10.0x with best value sectors in the region being Automotive and Real Estate, with average multiples of only 6.7x and 7.0x respectively, whilst the most expensive sector was Financial Services with an average multiple of 11.8x.
  • UK/Eire deals continue to be the main driver of long term European average, representing 27% of overall disclosed multiples. Highest value sectors in the region were Consumer and Financial Services, closely followed by TMT, whilst lowest multiples were paid for targets in the Real Estate and Automotive sectors.
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