One source, of course, is the BDO Private Company Price Index (PCPI). Q1
results for the PCPI were just released and are
from BDO. The results suggest that PE valuations were staying strong while
trade multiples dropped compared to the prior year. Roger Buckley, the BDO partner (Birmingham) who manages
the PCPI, comments on the ‘very creditable performance’ despite the
environment—indeed, since BDO’s average EV/EBITDA multiples came out to
9.8x for trade buyers and 12.0x for PE—and that’s against historic
EBITDA. Many UK valuation professionals struggle to use these PCPI
investment multiples in their fiscal or contentious work. BVWire—UK offers a two-question survey on this topic: What sources do you use for valuation multiples in
your business valuations? Please take a minute to add your thoughts, and
we’ll report on the results in our next fortnightly issue.
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