Q2 2018 summary
Average European PE deal multiples recovered to 10.6x in Q2 2018, reversing the decline in multiples seen since Q2 2017.
TMT was the hottest sector in Q2 2018 at 13.0x and over the last six quarters with an average multiple of 11.3x. DACH and Nordic regions drove this trend with TMT valuations in those regions increasing to 12.8x and 12.1x respectively.
The financial services sector cooled down in Q2 2018 after being the hottest sector in Q1 2018. The average financial services multiple in Q2 2018 dropped to 11.1x from 11.4x in the first quarter of the year.
The Nordic region saw its hottest quarter since 2015 and was the highest valued region in Q2 2018 at 12.8x. High valuations were particularly seen in the TMT, healthcare and business services sectors.
Entry multiples in the consumer sector have continued to decline since Q4 2017 and were down to 9.1x in Q2 2018, potentially creating good value opportunities for investment.
Deals in the €100m and €250m saw the highest multiple in Q2 2018 at 12.4x. The > €1bn range remains the hottest deal range over the last six quarters at 12.1x with best value being seen in the €50m to €100m range at 9.7x.