Retail Update : Fourth Quarter 2011
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 in 2011 (see first chart in p.4). During the LTM the following trends have been observed:
- 209 transactions were announced in 2011 compared to 175 in 2010. As shown on the last right-hand chart, announced European transactions in Q4’11 (48) were relatively stable compared to the same period in 2010 (44), but a decrease has to be noted since Q2’11 (62 transactions) which can be considered as an exceptional quarter.
- 82 private equity backed transactions (either as a buyer or as a seller) have been announced in 2011 which is 15% higher than in 2010.
- Average enterprise value per disclosed deal was higher in 2011 (€276m) than in 2010 (€219m). However, median enterprise value per disclosed deal was higher in 2010 (€72m) compared to 2011 (€44m), reflecting the fact that except a few exceptional large deals in 2011, most of the deal amounts were lower in 2011 than in 2010.
- Finally, as shown on the last chart p.4, median transaction multiples increased from 9.1x EBITDA ratio in 2010 to 11.7x EBITDA ratio in 2011.
Download the Retail Update for more information.