Analysis of M&A multiple developments in Europe

Falling stock market causes low prices in M&A

The graph shows an EV/EBITDA index (squares) with the year 2005 as the base year. For Q2 2018, the index shows 118 which is comparable to the 2017 figure of 119. Please note that the 2018 index is calculated using only 212 observations compared to 675 for 2017

  • The blue graph shows the stock index of the The Dow Jones 600
  • Price developments on the M&A market typically follow the price development of listed companies with a delay in 3-6 months
  • The above graph only shows transactions with a cash value of at least USD 5m
  • Price levels are influenced by relatively large corporate trades

Description of the analysis method

  • Transaction date = deal announcement date
  • Transactions with expired or withdrawn bids are not included
  • The analysis period spreads from 1 April 2017 to 1 July 2018
  • Graph data is corrected for unregistered transactions which is based on M&A experience


Sources

  • MergerMarket
  • Infinancials

Data criteria

  • Transactions with a value of >USD 5m
  • Denmark: at least one of the parties (buyer, seller, target) is Danish
  • Denmark: all transactions are added to the analysis independent of data on transaction value
  • Denmark: only minority stakes of >30% and majority stakes are included in the analysis
  • Europa: at least one of the parties (buyer, seller, target) is European
  • Europe: all transactions are added to the analysis independent of data on transaction value
  • Europe: only minority stakes of >30% and majority stakes are included in the analysis
  • Countries included: Albania, Andorra, Armenia, Azerbaijan, Belgium, Bosnia and Herzegovina, Bulgaria, Channel Islands, Cyprus,Denmark, Estonia, Finland, France, Faroe Islands, Georgia, Gibraltar, Greece, Greenland, Holland, Belarus,Ireland, Iceland, Italy, Yugoslavia, Croatia, Latvia, Lichtenstein, Lithuania, Luxembourg, Macedonia, Malta, Moldova,Monaco, Norway, Poland, Portugal, Romania, Russia, San Marino, Switzerland, Serbia & Montenegro, Slovakia,Slovenia, Spain, Sweden, Czech Republic, Turkey, Germany, UK, Ukraine, Hungary, Isle of Man, Austria