The Dutch M&A market is, equal to the European market, at its highest point in 10 years. Due to the large amount of capital flowing in to the market and private equity shifting to smaller (mid market) deals, prices still increase. As a result the Dutch mid market shows a yearly significant increase in the number of deals. The ‘hunger’ for deals by private equity and the large amounts of capital made the average mid market transaction multiples show an increase year on year.
The recent average transaction multiples (EBITDA) per industry and the % of transactions per industry are as follows:
- IT 6,1 (17%)
- Healthcare 6,0 (6%)
- Wholesale 5,65 (12%)
- Agricultural & Food 5,5 (5%)
- Industry 5,25 (16%)
- Services 4,95 (21%)
- Advertising & communication 4,65 (3%)
- Building & Construction 4,05 (8%)
- Hospitality / tourism 4,0 (5%)
- Automotive, transport & logistics 3,75 (5%)
- Retail 3,65 (2%)
Since transaction multiples have shown a year on year increase the last few years and private equity and strategic buyers are still looking for interesting deals (add ons) in the mid market, more and more business owners are now considering to sell their business.
Post by B. Brusche