Private equity multiples in Africa by deal size 2016
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.
[cjtoolbox name=’Larger transcations higher multiples’ ]
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.
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.
[cjtoolbox name=’Leverage in Africa is low’ ] [/cjtoolbox]
