Retail Update : Third 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 increased from 160 transactions in 2009 to 209 transactions in 2011 (see first chart in following page). After the peak of 62 M&A transactions per quarter reached in Q2’11, which was considered as an exceptional quarter, deal volume remained relatively stable ranging between 48 and 56 per quarter (see last right-hand chart). During the LTM the following trends have been observed:
- 203 transactions were announced between Q4’11 and Q3’12 compared to 205 per LTM’11 (from Q4’10 until Q3’11). As shown on the last right-hand chart, announced European transactions during the Q3’12 amount to 54, which represents a decrease of 4% compared to Q3’11;
- 40 private equity backed transactions (either as a buyer or as a seller) have been announced in Q3’12 which is 8% higher than in Q3’11. Overall, 131 PE transactions were announced over the last twelve months;
- Average and median enterprise value per disclosed deal were lower during YTD’12 (respectively €220m and €36m) than in 2011 (respectively €276m and €44m), reflecting the fact that the deals in 2012 are smaller as compared to 2011;
- Finally, as shown on the last chart of the following page, median transaction EBITDA multiple decreased from 11.7x in 2011 to 8.2x during LTM, which is due to 3 exceptional transactions in Q3’11 whose EBITDA multiple were 794x, 43x and 30x.
Download the Retail Update for more information.