Retail Update : Fourth 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 decreased from 209 transactions in 2011 to 189 transactions in 2012 (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) until Q3’12. In 2012, the following trends have been observed:
- 189 transactions were announced in 2012, which is 10.6% less than in 2011. As shown on the last right-hand chart, European transactions announced during the Q4’12 amount to 34, which represents a decrease of 29.1% compared to Q4’11;
- 18 private equity backed transactions (either as a buyer or as a seller) have been announced in Q4’12 which is 5.9% higher than in Q4’11. Overall, 73 PE transactions (38.6%) were announced over the last twelve months compared to 82 in 2011 (39%);
- Average and median enterprise value per disclosed deal were higher during 2012 (respectively €330m and €51m) than in 2011 (respectively €276m and €44m). This increase is mainly caused by some large deals announced in Q4’12 as deals in the first quarters of 2012 were on average smaller than in 2011;
- Finally, as shown on the last chart of the following page, median transaction EBITDA multiple decreased from 11.7x in 2011 to 6.3x during 2012, 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.