New record for acquisition prices in Europe. Funds and manufacturers are prepared to spend more than 14 times the operating profit (EBITDA) of their target, an unprecedented level since 2010, according to the latest data from Refinitiv. In health, the figure even crosses the 24-fold mark, double the year 2020! In real estate, you have to spend 21 times, in energy more than 16 times and in tech, more than 15 times operating profit.
“There is a runaway effect linked to the overheating of the market. Sellers and buyers fear, as in the past, that the window of opportunity just opened, will close suddenly, testifies an investment banker. You start to see sales processes that shouldn’t take place because the results are not strong enough or the salespeople present the exceptional increases in end-of-year earnings as baseline scenarios. We are starting to turn down deals. “