Construction Update : First Quarter 2011
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 decreased in the LTM compared to 2010. During the LTM the following trends have been observed:
- 250 transactions have been announced during the LTM, compared to 272 for the year 2010. Announced European transactions in Q1’11 (50 transactions) decreased compared to the same period in 2010 (72 transactions);
- 80 private equity backed transactions (either as a buyer or as a seller) have been announced in the LTM which is identical to 2010;
- Average enterprise value per disclosed deal in the LTM is €1,259m against €1,320m in 2010. Note that this average is calculated based on 89 disclosed deals for the LTM and on 110 disclosed deals for 2010;
- Median transaction multiples decreased from 8.0x EBITDA ratio in 2010 to 7.5x EBITDA ratio in LTM. This due to the decreased transaction volume, as the median transaction multiples amounted to 11.5x EBITDA ratio in Q1’11 compared to 9.5x EBITDA ratio in Q1’10.
Download the Construction Update below.