Looking for a source for the latest transaction multiples being paid for U.K .private companies? A new guide, BVB Insights: Data and Analysis on UK Private Company Multiples, 2014 Edition, has this information in over 50 industry categories.
Key insights: The highest multiples paid were in the telecommunications, healthcare, and IT sectors, according to the guide. The consumer discretionary and consumer staples sectors also show relatively high multiples paid. Some of the key drivers of multiples in this space include: private equity firms acquiring strong branded companies, North American buyers in the private education space, and consolidation in retail automotive by the U.K.’s three largest players. The lowest multiples were paid in the materials sectors (mainly U.K. manufacturers), “largely due to the relatively low margins in this sector (5.6%), being the lowest amongst the 11 industry categories,” says the guide.
The guide, compiled by Business Valuation Benchmarks Ltd., is available from BVR. For details and how to order, go to BVWire, (free registration required).