Links' List of Multiples and Buyers | COVID-19's Impact on Private Company Valuation | March 2020

Links’ List of Multiples and Buyers | COVID-19’s Impact on Private Company Valuation | March 2020

When analyzing the most recent private equity multiples, it shows there has been a reversion to the mean, with the outlier being in the $25-50 million range. It is expected that deals of this size will experience declines in multiples towards the long-term historical mean, consistent with other middle-market transactions. The multiples paid in fourth quarter are based on historical EBITDA and the future earnings of the businesses, but certainly current events were not considered in these multiples.

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