In our latest US PE Breakdown, featured in outlets from the WSJ to CNBC, one particular figure stands out: the 10.8x valuation/EBITDA multiple for US M&A in 1Q 2017. Here are a few points to add nuance to that attention-grabbing stat:
It's crucial to clarify the eye-popping valuation/EBITDA multiple is not just for PE buyouts but also for general acquisitions.
US PE buyers have plenty of capital on hand to pay even heightened multiples: $552.6 billion in dry powder as of 3Q 2016.
The 10.8x figure is above full-year 2016 numbers, in an upward move that is definitely underpinned by positive sentiment around S&P 500 earnings and rising public market valuations.