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UK M&A Q3 2022 Valuation Indices

Category: Market Report

report Highlights

Highlights from our Q3 2022 UK M&A Valuation Indices, covering UK M&A transaction multiples for M&A deals completed in the third calendar quarter of 2022.

The M&A market, in terms of deal volumes, was stable over the first two quarters of the year with Q4 2021 reflecting the typical end-of-year seasonal fluctuations. Q3 2022 reveals a marginal decline in the UK M&A market which is partly driven by interest rate rises and continuing inflationary pressures.

UK M&A Deal Volumes Last 4 Quarters

Please note that the chart implies only the movement in deal values within our datasets that feed into these indices and not necessarily the average deal value movement across the entire market.

Deal Size

EV/EBITDA Vs Last 3 Quarters

MarktoMarket All Cap Index Q3 2022

Our data indicated that multiples increased in Q3 2022 compared to the previous quarter and were in line with median multiples in Q4 2021. We believe that this is partly due to a higher aggregate deal size in the latest quarter (see page 8). All other things being equal, this will result in a higher average multiple.

SECTOR-BASED INDICES

% of Index Constituents by Sector

MarktoMarket All Cap Index Q3 2022Further context comes from analysing our sample by sector. Multiples vary depending on the sector therefore, the disbursement of deals across sectors will influence the aggregate All Cap multiples each quarter. Traditionally lower-multiple sectors include Industrial & Business Support Services (“IBSS”) and Consumer.

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