Construction Update : Third Quarter 2010
Deloitte Financial Advisory Services
This quarter’s Construction Update, produced by Deloitte Financial Advisory Services, summarizes the most recent transactions along with information on the most active buyers, current transaction valuation multiples and an overview of the public market’s perception of the industry.
This quarter’s highlights
European Construction M&A deal volume and median multiples increased in the LTM compared to 2009 but still largely remain below pre-crisis levels. During the LTM the following trends have been observed:
- 267 transactions have been announced during the LTM, compared to 231 for the year 2009. Announced European transactions in Q3’10 (62 transactions increased compared to the same period in 2009 (50 transactions);
- 81 private equity backed transactions (either as a buyer, either as a seller) have been announced in the LTM against 55 in 2009, out of which respectively 71 and 48 transactions involved a private equity buyer;
- Average enterprise value per disclosed deal in the LTM is €1250m against €699m in 2009. Note that this average is calculated based on 102 disclosed deals for the LTM and on 84 disclosed deals for 2009;
- Median transaction multiples increased from 6.7x EBITDA ratio in 2008 and 6.9x in 2009 to 8.6x EBITDA ratio in LTM.
Download the Construction Update below.