From Axial Markets survey of network members for first quarter 2013:
- Valuations: 56% of deal professionals expect valuations to stay the same in 2013. Another 32% anticipate a rise.
- Major Issues: Active strategics, dry powder, and the European crisis are most expected to shape valuations in 2013. Interest rates, while a concern for some, seem to be a much lesser factor.
- Hot Industries: Over 48% of respondents indicated Health Care would witness the greatest changes in valuation. Business Services and Energy & Utilties are also expected to see significant shifts.
- Multiples: EBITDA multiples are expected to sit between 5.0x – 7.5x(Mid-Market Deals) for the rest of 2013, and revenue multiples likely falling between 0.5x – 1.5x.
- Number of Mega-Deals on the rise – such as Dell Computer, Heinz.
- The number of pursuits on the Axial network is up 233% first quarter 2013 over first quarter 2012.