Valuation and leverage multiples reach highs in lower middle market per GF Data®

The extended seller’s market – with unprecedented valuations and aggressive debt availability being driven by non-bank lenders – continued unabated in the second quarter of 2017 according to our recently released GF Data M&A and Leverage Reports. GF Data collects and publishes proprietary information from over 200 PE sponsors on completed transactions valued between $10-250mm.

• Average valuation reached 7.4x – the highest quarterly mark in the 15-year history of the data base.
• Average total debt averaged moved to 4.2x for the quarter, also a high.
• Senior debt pricing increased in Q2 as did sub-debt coupon pricing.
• Deals with above average revenue growth and adjusted EBITDA margins captured a 33% premium compared to other deals in the data base—another all-time high.
• Manufacturing deals averaged 6.7x multiples in 1H, yet another peak.

GF Data continues to provide the most on-target valuation, leverage and deal term information in the lower-middle market.  Our online valuation database cuts industries to 6 digit NAICS codes for granular valuation marks that are updated quarterly with additional detail by size, revenue growth and adjusted EBITDA margins.