Following a slow third quarter, middle-market deal activity finished strong in 2015, according to a year-end report released Feb. 12 by data provider GF Data Resources.
High pricing and M&A volume mirrored conditions in 2014, according to the report. In both years, valuations averaged 6.7 times trailing 12 months EBITDA.
The report’s data show a deal count similar to that in 2014. GF Data tracks 204 private equity firms and other deal sponsors, which completed 218 deal in 2015 compared with 211 the year prior.
“Still-rising valuations on larger transactions, record premiums for selling businesses of above-average financial quality and continued declines in average equity contribution made possible by abundant debt—these are all signs of an even more mature seller’s market,” said GF Data CEO Andrew T. Greenberg in a press release announcing the report’s findings.
GF Data provides private equity firms and other users information to value and assess M&A transactions. To learn more about its reports or to contribute data, please contact Bob Wegbreit.