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)
Following the extreme peaks and troughs of 2008 to 2010, PERs remained relatively stable from 2012, with a gentle increasing trend to 2016. The subsequent 18 months have shown increased valuations, generally in line with stock market trends. However, there also appears to also a higher level of volatility due several notable high value SME transactions producing spikes in the average PER.
Our latest newsletter highlights a significant decrease in deal volumes in the first half of 2018, but with an increase in average deal value. Average price multiples spiked in the first quarter of 2018 to 8.0, almost reaching the pre-financial crash high of 8.1. However, this peak was mainly caused by a number of specific SME deals with abnormally high multiples and the average dropped back in the second quarter of 2018. Average prices remain higher than their five or ten year averages.
For more detailed commentary and definitions, please read our NEWSLETTER.