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. 2017 saw a significant recovery in PERs in the first half of the year, generally in line with stock market trends but also due to several notable high value SME transactions. The average PER than fell back slightly during the second half of 2017.
Our latest newsletter highlights lower deal volumes overall in 2017, mainly due to a reduction in deals involving foreign buyers or targets. SME deal volumes involving purely UK buyers and sellers remained fairly consistent. Average price multiples fell back from their high in early 2017, although this peak was mainly caused by a number of specific SME deals with abnormally high multiples. Average prices remain higher than their five or ten year averages.
For more detailed commentary and definitions, please read our NEWSLETTER.