Epsilon Research has released the Q3 2019 Argos Index, which measures private midmarket company valuations in the euro zone. The Index is calculated based on the information contained in the Epsilon multiple analysis tool (EMAT), a unique database of European acquisition multiples and deal analysis reports (€1m-to-€500m deal value). Using a rolling six-month historic view, Epsilon Research finds a current enterprise value/EBITDA (EV/EBITDA) ratio of 10.1x—similar to the ratio from the two previous quarters. The EMAT transaction multiples database is available here with subscription.

Similarly, this year’s UK 200 Small and Medium Enterprise Valuation Index shows little change in overall multiples. UK 200 notes particularly that capital remains plentiful (and relatively cheap) for smaller enterprises, and, with sterling under pressure, the UK has suddenly become ‘a good value option for M&A activity.’ Their EV/EBITDA multiple has risen to 6.1x, from 6.0x last year. These ratios were derived from a group of transactions with a £5.0 million average deal size—so very representative of the type of business valuations many BVWire—UK subscribers do.