Private Company Valuation Database
An authoritative guide to the pricing of private company sales and acquisitions across the UK.
The PERDa database uses information on completed private company deals to provide a robust insight of both historic and current Price Earning Ratios (i.e consideration as a multiple of the target’s profits). All data is adjusted to show the actual consideration paid and the target’s true underlying profits, and therefore provides far more meaningful data than measures that are restricted to publically available information. Data is provided by corporate finance advisors and Experian.
UK HISTORIC PRICE EARNING RATIOS (“PER”)
The graph shows the rolling six month average ratio between enterprise values and underlying profits (EBIT) for deals across the UK.
((Data is set out in the newsletters)
Overall, after the extreme peaks and troughs of 2008 to 2010, PERs have remained relatively stable since 2012, with a gentle increasing trend since 2013. There was a slight decline in PERs in the second half of 2016, which may be a consequence of the Brexit referendum result. However, the first half of 2017 saw a significant recovery in PERs, generally in line with stock market trends, but also included several notable SME transactions with particularly high valuations.
Our latest newsletter highlights a slight decline in both deals volumes and deal values in the second half of 2016, compared to the first half of the year. It appears the resulting uncertainty and instability of currency markets regarding the referendum may have either postponed or cancelled deals.
For more detailed commentary and definitions, please read our NEWSLETTER.