For 2019:
- The average EV/EBITDA*- multiple in Wallonia is 6,4.
- 31% of transactions foresee a vendor loan; 22% have an earn-out clausule.:
- Reaching the pension age is the main reason for selling the business in small acquisitions. The will to make a financial gain is more important in bigger transactions.
For 2020:
- We can expect to go from a sellers market to a buyers market.
- It is very likely that the market will be dominated by strategic and financial buyers as they have more liquidity and a real strategy behind their acquisitions.
- Acquisition experts estimate that the number of transactions will drop by at least 10% in 2020. For 45% of the respondents, we can even expect a decrease of more than 25%.
- The impact on the selling prices will depend much on the business sector in which the company operates, and whether it has experienced the crisis well, or not. A rising EV/EBITDA multiple is what experts are announcing for sectors as the pharmaceutical sector, digital, medtech, highly digitalized companies, or counter-cyclical sectors. Conversely, the heavily impacted sectors, such as the hotel and catering industry, retail businesses or construction, risk seeing the multiple decrease... at least according to experts.
- To qualify the impact on the EV/EBITDA multiple, experts recommend isolating the months of crisis, or even 2020, corporate valuations.
Source: Sowaccess rapport « La transmission d’entreprises en Wallonie : retour sur 2019 et perspectives 2020 »