EuroDev M&A has prepared a report of add-ons activity in the North American and European markets. It gives insights into key development in add-ons activity of PEs in both regions. It is our pleasure to share this resource with you.
Some key findings of this report are:
- Nearly 30% of PE-backed companies now undertake at least one add-on acquisition, compared to less than 20% that did so in the early 2000s.
- Add-ons are an effective way to find buyout acquisitions at lower multiples. Add-ons have transacted at a median valuation/EBITDA multiple of 8.4x globally since 2006, compared to 9.0x for platform buyouts.
- It takes time to execute deals and integrate businesses; the median time to exit tends to be about a year longer for companies that undergo at least one add-on.
To read the full M&A activity report, click the image below or follow this link to access the full Whitepaper “Building through add-ons”.
Stuck with questions after reading this? Please do not hesitate to get in touch with Gerben Groothuis, Managing Director M&A.