• Private Company Price Index Q2 2017

Private Company Price Index Q2

03 October 2017

We are delighted to attach the latest edition of the Private Company Price Index (PCPI) for Q2 2017.

The PCPI, collects data surrounding Enterprise Value (EV) to EBITDA multiples.  Enterprise Value represents the market value of a business, being the market capitalisation, plus any associated debt and less any surplus cash balances held.  The Index tracks the EV to EBITDA multiples paid by trade and private equity buyers when purchasing UK private companies.

In our PCPI editions, we examine this market data and compare it with historic data to identify key trends, and the current factors impacting current multiples.

The latest edition shows Q2 registering a 9.5% increase on Q1 deal volumes.  The underlying sentiment in the market is that of increasing competition for good quality businesses, which in turn is seeing a continuing increase in the average deal multiples being paid.  There is also the continuing trend of sectoral consolidation in some areas, most evident in the staple sectors of Healthcare and specialist Manufacturing.

The Northern Ireland transaction trend in the period reflected smaller scale sectoral consolidation, with examples such as the JP Corry acquisition of H&T Bellas and MMC Quarries acquisition of Patrick Bradley Limited.  The largest NI transaction in the period was the Merger of Dunbia and Dawn Meats.