Category Archives: Articles

Have Mid-Market Values Peaked?

Middle market valuations achieved a peak in 2016, according to GF Data. Overall valuations for private equity sponsored transactions valued between $10 million and $250 million averaged 6.9x Trailing Twelve Months (TTM) Adjusted EBITDA, a record high in a data set that goes back to 2003.

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A Market Participant Perspective on the Size Premium

In addition to the industry breakdowns, GF Data segregates the universe of observed transactions by size. As expected, within the lower middle market universe, valuation multiples are positively related to size.

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Valuations Soared in 2015, Making it Tough for PE Firms to Compete with Strategic Buyers

Prices paid for lower middle-market targets averaged 9.1 times Ebitda, up from 7.8 in 2014, says GF Data’s Graeme Frazier.

Soaring valuations in today’s frothy M&A environment have made it difficult for the average private equity firm to win deals. Even when a private equity firm is able to buy a company, the margin to create value is thin, due to the high price paid to acquire the company in the first place. According to S&P Capital IQ’s LCD unit, U.S. buyout firms paid an average of 10.3 times Ebitda for their purchases in 2015. That’s surpasses the 9.7 times Ebtida seen in 2007.

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Mid-Market Deals Maintain High Valuations as Deal Pace Slows

Deborah L. Cohen | middlemarketgrowth.org GF Data Report Calls Activity ‘More of the Same’ Midsize companies commanded higher valuations in the third quarter, though the number of deals was down, according to GF Data Resources, a research firm that tracks … Continue reading

Calling the Crest, Continued

By Andrew Greenberg, CEO GF Data – The “Calling the Crest” article published a few weeks ago generated a wide response. Most of GF Data’s correspondents seemed to agree with the thesis that it may be early to say this … Continue reading

Record Year is Within Reach: An Interview with Graeme Frazier

Overall, the market is very robust across the board. The Southeast is as healthy, if not healthier, than any other market in the country. Continue reading

Are Valuations Commoditizing?

By Andy Greenberg, CEO GF Data A question raised with increasing frequency this past year is: Are valuations of middle market businesses becoming commoditized? That is, if you have a business of a given size and industry, is it more … Continue reading

Confluence of Debt

by Andy Greenberg, CEO GF Data
published PEP Digest

The analysis surrounding GF Data’s quarterly reports usually is based on observing some trend or anomaly in the data and then drawing from practical deal-making experience to explain it.

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Where Have All The Sellers Gone?

by Andy Greenberg, CEO GF Data
published PEP Digest

When GF Data published its various year-end reports last month, the analysis seemed to confirm what many business buyers and deal professionals had already drawn from their own experience.

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Forecasting the Capital Markets “Weather”

by Andy Greenberg, CEO GF Data. Deal professionals talk about the capital market environment as obsessively as sailors talk about weather. — published PEP Digest

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