PRICE EARNINGS RATIO DATABASE
[/et_pb_text][/et_pb_column][/et_pb_row][/et_pb_section][et_pb_section admin_label=”Section” fullwidth=”on” specialty=”off”][et_pb_fullwidth_menu admin_label=”Fullwidth Menu” menu_id=”3″ background_color=”#000000″ background_layout=”dark” text_orientation=”center” submenu_direction=”downwards” disabled=”off” disabled_on=”on|on|” fullwidth_menu=”off” dropdown_menu_animation=”fade”] [/et_pb_fullwidth_menu][/et_pb_section][et_pb_section admin_label=”Section” fullwidth=”on” specialty=”off” transparent_background=”off” background_color=”#000000″ allow_player_pause=”off” inner_shadow=”off” parallax=”off” parallax_method=”off” custom_padding=”0px||0px|” padding_mobile=”on” make_fullwidth=”off” use_custom_width=”off” width_unit=”on” make_equal=”off” use_custom_gutter=”off”][et_pb_fullwidth_image admin_label=”Fullwidth Image” src=”https://perda.net/wp-content/uploads/2016/04/header-second.png” show_in_lightbox=”off” url_new_window=”off” use_overlay=”off” animation=”off” use_border_color=”off” border_color=”#ffffff” border_style=”solid”] [/et_pb_fullwidth_image][/et_pb_section][et_pb_section admin_label=”Section” fullwidth=”off” specialty=”off” transparent_background=”off” background_color=”rgba(232,179,129,0.9)” allow_player_pause=”off” inner_shadow=”off” parallax=”off” parallax_method=”off” custom_padding=”0px||0px|” padding_mobile=”on” make_fullwidth=”off” use_custom_width=”off” width_unit=”on” make_equal=”off” use_custom_gutter=”off”][et_pb_row admin_label=”Row”][et_pb_column type=”4_4″][et_pb_text admin_label=”sub heading” background_layout=”light” text_orientation=”center” text_font_size=”20″ use_border_color=”off” border_color=”#ffffff” border_style=”solid” custom_css_main_element=”text-shadow: 1px 0px 0px #000;”]A central source of the pricing of private company
sales and acquisitions across UK and Europe
The underlying data is sourced from both expert Corporate Finance advisors and Experian PLC to provide a robust insight of both historic and current Price Earning Ratios. All information is sourced from completed deals, i.e. the actual consideration paid and real underlying profits, and therefore provides far more meaningful data than measures that are restricted to publically available information
[/et_pb_text][/et_pb_column][/et_pb_row][/et_pb_section][et_pb_section admin_label=”Section” fullwidth=”off” specialty=”off” transparent_background=”off” background_color=”rgba(116,141,162,0.22)” allow_player_pause=”off” inner_shadow=”off” parallax=”off” parallax_method=”off” custom_padding=”0px||0px|” padding_mobile=”on” make_fullwidth=”off” use_custom_width=”off” width_unit=”on” make_equal=”off” use_custom_gutter=”off”][et_pb_row admin_label=”Row”][et_pb_column type=”4_4″][et_pb_text admin_label=”EUROPEAN PE RATIOS” background_layout=”light” text_orientation=”left” text_text_color=”#748da2″ use_border_color=”off” border_color=”#ffffff” border_style=”solid”]EUROPEAN PE RATIOS
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The graph shows the rolling six month average ratio between enterprise values and underlying profits for deals across Europe.
[/et_pb_text][/et_pb_column][/et_pb_row][et_pb_row admin_label=”Row”][et_pb_column type=”4_4″][et_pb_text admin_label=”Summary” background_layout=”light” text_orientation=”left” text_font_size=”16″ text_text_color=”#000000″ use_border_color=”off” border_color=”#ffffff” border_style=”solid”]SUMMARY
The database contains transactions showing the relationship between the Enterprise Value and profit measures including Historic underlying EBITDA and EBIT for recent deals involving private companies.
DEFINITIONS USED IN WEBSITE AND NEWSLETTERS
Enterprise Value – Value of shares in a private company plus the value of all non working capital debt (which includes bank and directors/shareholder loans, hire purchase and overdraft). Also excludes any surplus assets and make any necessary adjustment to reflect normalised working capital.
Historic underlying EBITDA – Earnings Before Interest, Tax, Depreciation and Amortisation for most recent and relevant 12 month period before transaction, adjusted so as to reflect the underlying earnings relevant to the acquirer.
Historic underlying EBIT – Earnings Before Interest and Tax for most recent and relevant 12 month period before transaction, adjusted so as to reflect the underlying earnings relevant to the acquirer.
[/et_pb_text][/et_pb_column][/et_pb_row][/et_pb_section][et_pb_section admin_label=”Section” fullwidth=”off” specialty=”off” transparent_background=”off” background_color=”rgba(116,141,162,0.14)” allow_player_pause=”off” inner_shadow=”off” parallax=”off” parallax_method=”off” padding_mobile=”on” make_fullwidth=”off” use_custom_width=”off” width_unit=”on” make_equal=”off” use_custom_gutter=”off” custom_padding=”0px||0px|”][et_pb_row admin_label=”Row”][et_pb_column type=”1_2″][et_pb_text admin_label=”Commentary” background_layout=”light” text_orientation=”left” text_font_size=”16″ text_text_color=”#000000″ use_border_color=”off” border_color=”#ffffff” border_style=”solid”]COMMENTARY
Our latest newsletter highlights a rapid increase in both deals volume and values in the second half of 2014, reflecting the upturn in global business confidence coupled with historically low interest rates in all main economic trading regions.
The average price (as a multiple of profits) of the private company deals recorded in the PERDa database has shot up to 7.1. This is far above the EBIT PER’s long terms average and signals that directors are looking for growth in shareholder value through strategic acquisitions, and are prepared to pay for it.
However, there remains significant unanswered questions that will affect the deal market in the coming years – will Greece leave the Eurozone? When will interest rates rise? What affect will the UK’s E.U referendum have on business confidence both in the UK and Europe? The answers and the implication of these scenarios are uncertain and therefore caution is required even off the back of very positive results moving into 2015.
For more details and commentary, please read our newsletter.
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In 2015 PER ratios continued to climb to pre-financial crisis peaks of 7.1, driven by relaxed monetary policy and growing economic confidence, before slightly dipping to 6.9 in the final quarter. Deal volumes and total deal values continue to increase and are now achieving close to pre-financial crisis levels.
[/et_pb_text][/et_pb_column][/et_pb_row][/et_pb_section][et_pb_section admin_label=”contact” fullwidth=”off” specialty=”off” transparent_background=”off” background_color=”rgba(116,141,162,0.14)” allow_player_pause=”off” inner_shadow=”off” parallax=”off” parallax_method=”off” padding_mobile=”off” make_fullwidth=”off” use_custom_width=”off” width_unit=”on” make_equal=”off” use_custom_gutter=”off” custom_padding=”0px||0px|”][et_pb_row admin_label=”Row”][et_pb_column type=”2_3″][et_pb_text admin_label=”Text” background_layout=”light” text_orientation=”left” use_border_color=”off” border_color=”#ffffff” border_style=”solid” text_text_color=”#000000″ text_font_size=”16″]CONTACT
For more information on the ratios or for advice on selling or buying businesses, contact your local LEA member as shown on www.leadingedgealliance.com
For more information on the database contact Mark Greaves atwww.francisclark.co.uk, email [email protected]. [/et_pb_text][/et_pb_column][et_pb_column type=”1_3″][et_pb_image admin_label=”Image” src=”https://perda.net/wp-content/uploads/2016/04/perdo-logo-blue.png” alt=”price earnings ratio database” show_in_lightbox=”off” url_new_window=”off” use_overlay=”off” animation=”off” sticky=”off” align=”right” force_fullwidth=”off” always_center_on_mobile=”on” use_border_color=”off” border_color=”#ffffff” border_style=”solid” custom_margin=”30%|||” custom_margin_last_edited=”on|desktop”] [/et_pb_image][/et_pb_column][/et_pb_row][/et_pb_section]