Drawing from surveys of private equity dealmakers, as well as data from the PitchBook Platform, PitchBook has published its 3Q 2014 Global Deal Multiples and Trends Report. Sponsored by Hilco Global, Toppan Vite and PNC, the report offers a detailed picture of current deal structuring and investment multiples in the PE industry. Deal-making is examined through several lenses, including EBITDA and revenue multiples, debt-to-equity ratios, closing times and fees.
Some key findings from the report include:
38% of transactions required at least 20 weeks to close, up from 17% in 1Q and 8% in 3Q 2013
Non-senior debt comprised 5% of the average capital structure in 2Q, an eight-quarter low
Less than a third of PE transactions included monitoring or transaction fees in 2Q, well below 2012 and 2013 levels
96% of respondents anticipate revenue increases in their investments over the next 12 months