HISTORICAL VALUETREND INDEX SEPTEMBER 2017

Transcription

1 HISTORICAL VALUETREND INDEX SEPTEMBER 2017 ENTERPRISE VALUE (MM) LTM MULTIPLES* MONTHLY CHANGE YOY CHANGE READ MORE $10 - $ x -3.3% 3.6% $100 - $ x -0.1% 5.7% Page 2 $250 - $ x 3.4% 3.0% INDUSTRY BUSINESS SERVICES 8.4x 2.1% -22.9% Page 3 CONSUMER PRODUCTS 9.2x -2.8% -9.7% Page 4 EDUCATION & TRAINING -0.2% 9.7% Page 5 GOVERNMENT & DEFENSE 9.6x 1.7% -10.7% Page 6 HEALTH & MEDICAL 10.8x -1.0% 6.0% Page 7 INDUSTRIAL & MANUFACTURING 0.6% -4.9% Page 8 TECHNOLOGY & TELECOM 2.9x -3.3% -23.7% Page 9 *Technology & Telecom multiples are EV/Revenue while all other industries are EV/EBITDA. Source: All data is from Capital IQ, unless noted otherwise; YOY = year-over-year; LTM = last twelve months ending September 30, ABOUT CAPSTONE S VALUETREND INDEX The ValueTrend Index tracks middle market transaction values across various industries. Capstone calculates M&A valuations by analyzing the prices paid for recent acquisitions and available data from public companies. The Education & Training industry exclusively uses public company data, since transaction valuations are rarely disclosed. The Technology & Telecom sector is expressed as a multiple of revenues, while the remaining sectors are based on EBITDA. Capstone s index is intended to gauge the state of valuations compared to previous years, rather than to provide a specific valuation estimate for any individual company. Click here to receive this data monthly.

2 MIDDLE MARKET OVERVIEW ABOUT THE OVERALL MIDDLE MARKET INDEX The Overall Middle Market Index is important because valuations can vary greatly depending on the transaction size. Larger companies generally command higher multiples because: 1. scale and market share matter; 2. with scale, there is generally a lower risk potential; and 3. lenders are willing to provide more leverage to fund the acquisitions. Below are transaction multiples for companies in the middle market, segmented by size of the transaction. Please note that the EV/EBITDA and Transaction Volume graphs only include data for transactions that disclosed financial information. EV/EBITDA TRANSACTION MULTIPLES DISCLOSED 9.0x 7.0x 8.6x EV in millions 9.9x 10.1x 10.9x 11.1x 10.7x 9.9x 9.8x 8.9x 8.9x 8.4x 8.2x LTM $10 - $100 $100 - $250 $ EV in millions $10 - $100 $100 - $250 $ BUYER BREAKDOWN September 2015 September 2016 September % 24.1% 29.1% 73.5% 75.9% 70.9% p2

3 BUSINESS SERVICES TRANSACTION EV/EBITDA MULTIPLES 8.3x 8.6x 8.3x 8.3x 8.3x 8.4x x 11.5x 10.5x Capstone Business Services Group S&P 500 HEAD OF BUSINESS SERVICES 24.1% Todd McMahon % Speak with Todd to get sector p3

4 CONSUMER PRODUCTS TRANSACTION EV/EBITDA MULTIPLES x 9.8x 10.2x 8.7x 9.1x 9.2x x 1 Capstone Consumer Products Group S&P 500 HEAD OF CONSUMER PRODUCTS 20.6% Tom Elliott telliott@capstonellc.com % Speak with Tom to get sector p4

5 EDUCATION & TRAINING 1 PUBLIC EV/EBITDA MULTIPLES 11.9x 9.9x 7.0x x 1 Capstone Education & Training Group S&P 500 HEAD OF OFEDUCATION CONSUMER& PRODUCTS TRAINING 27.3% 21.0% Jacob Voorhees jvoorhees@capstonellc.com % 72.7% Speak with Jacob to get sector p5

6 GOVERNMENT & DEFENSE TRANSACTION EV/EBITDA MULTIPLES 8.6x 9.8x 7.2x 10.5x 8.3x 9.6x x 1 9.0x Capstone Government & Defense Group S&P 500 HEAD OF GOVERNMENT & DEFENSE 28.0% Ted Polk tpolk@capstonellc.com % Speak with Ted to get sector p6

7 HEALTH & MEDICAL TRANSACTION EV/EBITDA MULTIPLES 9.0x 9.9x 10.3x 8.9x 10.8x 10.8x x 1 Capstone Health & Medical Group S&P 500 HEAD OF HEALTH & MEDICAL 29.5% Eric Williams ewilliams@capstonellc.com % Speak with Eric to get sector p7

8 INDUSTRIAL & MANUFACTURING TRANSACTION EV/EBITDA MULTIPLES 8.3x 8.4x 8.3x 8.3x 7.7x x 12.5x 11.5x 10.5x 9.5x Capstone Industrial & Manufacturing Group S&P 500 HEAD OF INDUSTRIAL & MANUFACTURING 24.2% David Bench % Speak with David to get sector p8

9 TECHNOLOGY & TELECOM TRANSACTION EV/REVENUE MULTIPLES* 3.5x 3.0x 2.5x 1.5x 1.0x 0.5x 3.8x 3.2x 3.3x 3.2x 2.9x 2.5x Three year Revenue multiple average *Median multiples for SaaS and Cloud transactions only. PUBLIC COMPANY EV/REVENUE INDEX 4.5x 3.5x 3.0x 2.5x 1.5x Capstone Technology & Telecom Group S&P 500 HEAD OF TECHNOLOGY & TELECOM 30.9% David Michaels % Speak with David to get sector p9

10 ABOUT CAPSTONE ESTABLISHED REPUTATION Capstone was formed with a singular purpose: to build an entrepreneurial-focused firm capable of delivering superior results with unmatched skill. We have earned that position in the sectors we cover by representing emerging industry leaders. Today, with 10 offices in the US and UK, we are a highly differentiated firm with capabilities that are rare in our industry. Learn more: MIDDLE MARKET INVESTMENT BANKING FIRM OF THE YEAR US MIDDLE MARKET INVESTMENT BANK OF THE YEAR USA MID-MARKET INVESTMENT BANKING FIRM OF THE YEAR PROVEN CAPABILITIES Mergers & Acquisitions Corporate Restructuring Private Placements Advisory Services Corporate Sales Corporate Restructurings Venture Capital Advisory Recapitalizations Turnaround Management Valuation Services Divestitures Chapter 11 Advisory Subordinated Debt Merchant Banking Acquisitions Interim & Crisis Management Unitranche Debt Leveraged Buyouts Specialty M&A Senior Debt Management Buyouts Performance Improvement Venture Debt Mergers Quality of Earnings Analysis Bridge Loans Joint Ventures & Alliances Liquidating Trust & Lit Support Working Capital Lines GRIT INTEGRITY PERFECTION FORESIGHT PASSION EXCELLENCE