What Makes Companies Successful and Ripe for Acquisition?

Business Valuation Update
Business Valuation Australia
July 15, 2016
Paul Gooley

Summary

While compiling the recently published Deal­tracker report, Grant Thornton’s growth advisors reflected on what makes companies successful and ripe for acquisition. The data consistently show that companies that have high growth and services, products, or IP that is valuable on a global scale will receive above-average EBITDA multiples on sale. This trend has been demonstrated over the 18-month reporting period from July 2014 to December 2015, with marginally higher multiples than recent years, driven by outperformance in the consumer discretionary, consumer staples, and financial sectors. The following summarises the trends highlighted in this reporting period.