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 is available as of February 2022 and covers the fourth quarter of 2021.
In 2021 Q4 average valuation of transactions in the range of $10-250 million was adjusted EBITDA of 7.5 times TEV/TTM Adjusted EBITDA. This is down slightly from 7.6 times TEV in the 3rd quarter. It is still one of the highest quarterly average valuations we have seen in some time.
Businesses that perform better financially continue to be the majority of transactions during this time. In Q4 2021, there is a continuing trend of a high percentage of deals having better than average revenue growth and EBITDA margins. We see that 66% of transactions are of a higher than average quality standard and were valued at a 30% premium to others in 2021.
Total numbers of transactions are higher than in the 2020 Q4 period.
We will continue to monitor the trends and periodically report to our readers during this unusual time.
Some definitions:
EBITDA refers to Earnings Before Interest, Taxes, Depreciation and Amortization EBITDA is a surrogate for cash flow.
TEV is Total Equity Value.
