Retail Update : First Quarter 2012
Deloitte Financial Advisory Services
This quarter’s Retail 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
At the European level, Retail M&A yearly deal volume has been increasing in the last three years, from 160 transactions in 2009 to 209 transactions in 2011 (see first chart in p.4). The deal volume per Q1’12 comprises 53 announced transactions. During the LTM the following trends have been observed :
- 219 transactions were announced during the last twelve months (from Q2’11 until Q1’12) compared to 177 per LTM11 (from Q2’10 until Q1’11). As shown on the last right-hand chart, announced European transactions during the first three months of 2012 amount to 53, which represents an increase of 23% compared to Q1’11. Since Q2’11 (62 transactions), which was considered as an exceptional quarter, European transactions remain relatively stable with an average of 52 transactions per quarter
- 30 private equity backed transactions (either as a buyer or as a seller) have been announced in Q1’12 which is 25% higher than in Q1’11. Overall, 86 PE transactions were announced over the last twelve months
- As presented in the third chart on p.4, average enterprise value per disclosed deal was lower at Q1’12 (€233m) than in 2011 (€276m). However, median enterprise value per disclosed deal was higher in the first quarter of 2012 (€103m) compared to 2011 (€44m), reflecting the fact that more large deals were announced during Q1’12
- Finally, as shown on the last chart p.4, median transaction multiples evolve at a steady phase, remaining at a level of 11.7x EBITDA ratio over the last twelve months.
Download the Retail Update for more information.