Daily News: May 20, 2014

Mid-Market Premiums Jump in Q1/14

According to the GF Data May 2014 Q1 M&A Report, the premiums received by lower middle-market businesses with greater size and better financial performance are at their hightest.

Businesses valued in the $50-250mm range received TEV/EBITDA multiples with multiple averages over three turns higher than similar businesses in the $10-50mm range as reported to GF Data by nearly 200 middle market PE funds.

Debt/EBITDA multiples in the $50-250mm deal space averaged over 5x for the first time in GF Data’s transaction universe that dates back to 2003.

GF Data’s detailed reports and data base benchmark pricing, deal structure and deal terms of private lower middle-market deals in the $10-250mm.