Alteris LLC tracks Mergers & Acquisitions (M&A) valuation and other trends/metrics from its various partners and research sources. We will periodically report on what we find here. For more detailed information on valuations and M&A trends contact us directly.
Please note that this information is a summary, generalized for many different types of companies of various sizes.
This data is collected from various sources and includes proprietary deal information from over 200 PEGs (Private Equity Groups) on $10-250mm sponsored transactions, with an average TEV near $50mm.
The information available as of February 2021 show that valuations on private middle-market transactions in the USA increased in the fourth quarter of 2020 to a higher level of 7.0x Trailing Twelve Months Adjusted EBITDA (Q4 202020).
This showed a decline in valuations due to the Covid recession of about .3-.4x from earlier.
Total debt increased somewhat closer to pre-Covid levels. It was at 3.8x in Q4 2020.
Valuations and M&A trends continue to change rapidly and we will report that information as it is available.
Some definitions:
LIBOR refers to the London interbank offered rate. It is an interest rate that some large international banks charge to each other for short-term loans. It is often used as a benchmark in setting interest rates for different financial products and loans.
EBITDA refers to Earnings Before Interest, Taxes, Depreciation, and Amortization EBITDA is a surrogate for cash flow.
