Daily News: October 31, 2012

CMF Surveys Middle-Market Private Equity Funds’ Y/Y Trends


CMF Associates, a provider of financial, operational and human capital solutions to private equity, middle-market and small cap public companies, released survey results based on M&A East conference attendance in Philadelphia in October 2011 and October 2012.

Based on funds surveyed in the fall of 2011, CMF reported an average selling price at six times EBITDA, an average time between initial meeting to close of a deal from four to six months, and average aggregate revenue growth of a portfolio as a whole ranging from 5-10%.

Based on the same survey conducted in the fall of 2012, CMF found that the average selling price remained steady at six times EBITDA. Additionally, the average time between initial meeting to close of a deal shortened, with 67% of funds averaging four to six months and 9% of funds averaging six to eight months, compared with 35% of funds averaging four to six months and 31% of funds averaging six to eight months in 2011. Aggregate forward-looking revenue growth of the portfolio remained steady at 5-10%; the survey results demonstrate a steady private equity-owned middle-market.

CMF Associates delivers transaction- and transition-focused financial, operational, and human capital solutions to private equity, middle-market and small cap public companies.

To view the survey press release and related charts, click here.