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

PHILADELPHIA (May 8, 2014) — 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 ACG InterGrowth conference in Las Vegas, April 28-30, 2014, compared with the results from the same surveys conducted at ACG InterGrowth in 2013 and 2012.

Based on the comparison of these three surveys, we found M&A EBITDA multiples significantly shifting toward the 8-9X range, versus a peak in the 6X range in previous years. This is consistent with what we have been hearing anecdotally in the market about competition for deals and price inflation.

Meanwhile, the average time required to close a deal remains steady in the 4-6 month range, but with more participants experiencing 6-8 month timeframes than in 2012 and 2013; extended due diligence appears to be the primary cause of driving timeframes out.

Finally, sales growth expectations within the portfolio as a whole improved to the 5-15% range, up from 0-10% in 2013.

See full press release and graphs here.

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