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Private equity multiples in Africa by deal size 2016

17.10.2019
By RisCura

Higher priced transactions tend to take place at the larger end of the deal size spectrum, in this case in the category of companies with Enterprise Value greater than USD 250m.

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It is interesting to note that at an Enterprise Value of less than USD 250m, there is very little differentiation between the multiples of medium sized transactions and small transactions. The median multiple within both size buckets is around 6x. However, on the upper end of the spectrum, the very large transactions are attracting EV/EBITDA multiples of over 8x.
Using a median Debt:Equity level across those investee companies that do have debt on their balance sheets, the debt level in these companies remains quite flat and low, especially in contrast to those in a global context, regardless of the size of the company.

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Author

  • RisCura is a global financial services firm with more than $200 billion in assets under advice and reporting. We partner with institutional investors across emerging markets, bringing specialist investment management, advisory, and analytical expertise to help clients make informed, long-term investment decisions.

    Guided by our “Invest with Care” philosophy, we recognise that investment decisions are not only about money and numbers, but about the people and futures they affect. Through tailored solutions, deep research, and a client-centric approach, RisCura helps investors navigate complexity, manage risk, and create lasting value for their beneficiaries.

    RisCura is known for its focus on liability-driven investing, responsible investment practices, investment transparency, reliable valuations, independent risk assessments, performance standards, and long-term investment outcomes.

    Our capabilities span investment advisory, investment management, investment analytics, institutional platform services, and alternative investment services. Across these areas, we combine consistent methodology and proprietary tools with deep local insight, recognising that each market is unique while responsible investing remains universal.