Contrary to what is still widely believed, the latest Argos Index® mid-market report once again shows higher average valuations for corporate acquisitions completed by financial investors compared to strategic investors.
You can find the current Argos Index® for the third quarter of 2024 for unlisted mid-market companies in the Eurozone here.
This is, in many respects, very good news for mid-sized business owners in the lower and middle market segments who are considering realizing the value of their life’s work or that of their family.
• For one thing, the now-apparent trend of rising valuations is likely to continue in light of current developments in the capital markets.
• Furthermore, in addition to the necessary financial resources, financial investors typically also possess proven management capabilities to actively support the company’s continued successful development following an acquisition.
• Furthermore, for many medium-sized target companies, there is a good prospect of continuing to be managed as an independent business unit rather than being integrated into centralized corporate structures—with all the associated benefits in terms of corporate identity, agility, job security, etc.
• And last but not least, private equity firms in this segment are usually managed in a very entrepreneurial manner, so there is a solid common ground when it comes to management culture.
-> Please feel free to contact us at any time if you’d like to discuss opportunities presented by private equity in a completely non-binding manner—or if you’ve already given this some serious thought.
Although not particularly pleasing for those involved, it is not surprising, especially under the current security policy circumstances...
Although not particularly pleasing for those involved, it is not surprising, especially under the current security policy circumstances...
