MarktoMarket UK Valuation Indices
In collaboration with the UK's most active M&A advisers, MarktoMarket have compiled a comprehensive overview of UK Valuation Indices, with a focus on the small to mid-markets, where data is often scare.
The MarktoMarket UK Valuation Indices have been created in response to industry requests for high-level reference points for the valuation of UK companies based on size and sector characteristics.
These indices have been compiled using MarktoMarket’s proprietary deal data as well as transaction information submitted by its customers, including many of the UK’s most active M&A advisers.
The Indices focus on the small and mid-market where data is scarce and are presented by deal size and sector.
They are intended to be reference points for corporate finance, valuation and private equity specialists operating in the UK M&A sphere.
The Executive Report is available to anyone working within the advisory or investment industries.
Multiple Trend Lower
The Indices suggest that UK M&A multiples trended lower in 2019 versus both 2018 and 2017. The MarktoMarket All Cap Sub-£250m Index mean EV/EBITDA multiple in 2019 was 9.08x versus 9.99x in 2018, a fall of 9.1%.
Buy & Build Opportunities
The Indices also demonstrate a clear correlation between deal sizes and multiples paid. The size of the multiple differential between size bands creates significant arbitrage opportunities for ‘buy and build’ acquisition strategies.
Trends between sectors
Consumer multiples rebounded in 2019 versus 2018. Both Technology, Media & Telecommunications (TMT) and Industrials & Business Support Services (I&BSS) multiples trended lower.
BAU for smalller firms
The Indices tracking the UK’s smallest companies suggest that multiples held up better in 2019 for the nation’s smaller companies, suggesting more of a ‘business as usual’ approach at the lower end of the market.
Where does the data come from?
The data consists of MarktoMarket’s proprietary data and multiples submitted by its customers.
MarktoMarket is a data and analytics platform built to help M&A professionals generate better ideas, faster. The platform is used by professionals in corporate finance, private equity, accountancy and corporate law to access comprehensive data and intelligence on private UK companies, streamline key research workflows and make more informed business decisions.
To learn more about how MarktoMarket could help your firm, book a free demo with one of our team.