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 November 2021 and covers the third quarter of 2021..
In 2021 Q3 average valuation of transactions in the range of $10-250 million were adjusted EBITDA of 7.6 times TEV. This is the highest quarterly average valuation we have seen in some time, well over ten or fifteen years.
Businesses that perform better financially were the majority of the transactions during this time. Our data showed this factor accounts for 62% of all transactions. Better performing companies are having a somewhat easier time in closing a sale.
It seems that those companies that are not financially performing quite as well are not selling as quickly. Sometimes these businesses are not selling at all.
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.
