This index, prepared by Epsilon Research, tracks the valuations of eurozone private, midmarket companies in which a majority stake has been acquired during the last six months. While the overall Argos Index® remained stable in the third quarter, at 10.0x EBITDA (the average of the last five years), this masked the increasing spread between the multiples of the high end of the market (still more than 12x EBITDA) and those of the lower midmarket (down 0.8 points, at 8.9x EBITDA).

Prices paid, both by strategic buyers and investment funds, were stable. Multiples paid by strategic buyers have been stable, at 9.9x EBITDA, since the fourth quarter of 2021 and have not been affected by the continued slide in equity markets. Those paid by investment funds have also been stable, at 10.7x EBITDA, this quarter and remain higher than those paid by strategic buyers.

The current report also shows that the share of transactions at multiples greater than 15x EBITDA returned to pre-COVID-19 levels for the first time, at 12% of analysed transactions.