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CMF Surveys Middle-Market Private Equity Funds’ Year-over-Year Trends

By October 14, 2013Press Releases

PHILADELPHIA (October 14, 2013) — CMF Associates, a leading provider of financial, operational, and human capital solutions to private equity, middle-market, and small cap public companies, today released the results of surveys completed by private equity executives at the M&A East conference in Philadelphia, October 8-9, 2013, compared with the results from the same surveys conducted at M&A East in 2012 and 2011.

Based on the comparison of these three surveys, we found M&A EBITDA multiples increasing with a strong upward pull toward the 7X range, versus a strong showing in the 6X multiple range in previous years.

Meanwhile, the average time to close a deal remains steady in the 4-6 month range, although we are once again seeing funds take 10+ months to close deals and heard many weary anecdotes of extensive diligence processes and wobbly, unsure sellers.

Finally, sales growth within the portfolio as a whole remained consistent with prior years with a majority expecting between 5% and 15% growth. We are, however, seeing fewer funds experiencing higher growth rates this year compared to 2012 – the optimism of 2012 seems to have turned, not to pessimism, but to a more muted outlook on growth.

See full press release here.

 

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