Murray Devine’s 2018 Private Equity Valuations Report Shows Sponsors Paid Record Prices Last Year


Expert panel participating in a webinar to discuss how dealmakers are reacting to elevated valuations and what it means for private equity long term.

Philadelphia, January 24, 2018 – Murray Devine Valuation Advisors today released its 2018 Private Equity Valuations Report. The research, “Acclimating to the Thinning Air,” examined trends in financial sponsor-led transactions and highlighted how private equity investors are adjusting to record deal multiples.

While U.S. private equity deal volume leveled off last year, falling to levels not seen since 2013, valuation for private equity deals advanced considerably. The median multiple of 12.9x EBITDA easily surpassed 2016 levels and also exceeded the previous high of 10x EBITDA set in 2006.

“The divergence in which deal volume retracts as valuations ascend typically reflects a flight to quality that can occur during the later stages of a market cycle,” said report author Daniel DiDomenico III, Senior Managing Director at Murray Devine. “Other factors are also at play, and the data is also beginning to reflect how the industry is evolving, from the growth in add-on acquisitions to a migration toward sectors and companies that will likely benefit from long-term ‘megatrends.’”

The report includes data on the median valuations paid by U.S. private equity firms last year, as well as M&A multiples broken down by deal size and by certain sectors.

The 2018 Private Equity Valuations Report can be found here.

Murray Devine is also hosting a free webinar to discuss both the drivers of high valuations and how financial sponsors are adjusting to the elevated prices. The free webinar, featuring an panel of private equity practitioners and lenders, will be held today January 24 at 1pm ET.

Interested parties can register for the live event here.

“The ability of sponsors to stay active and transact in such an environment speaks to both the creativity of the asset class and capabilities of sponsors today to create value after the investment,” said Dennis Murray, President and Co-Founder of Murray Devine. “While we think it’s unlikely that valuations ascend much higher in 2018, the ability to deliver returns in this environment underscores the level of sophistication that characterizes private equity at this moment.”

About Murray Devine Valuation Advisors

Murray Devine Valuation Advisors, a premier national valuation firm headquartered in Philadelphia, PA with offices in New York City and Austin, TX, provides financial opinions, financial and portfolio valuations and related valuation advisory services for leading private equity firms, business development companies (BDCs), private debt and hedge funds, commercial banks and corporations throughout the country.

Since its founding in 1989, the firm has remained true to its exclusive focus on “valuation and valuation only.” This guiding principal fosters subject matter expertise, thorough analysis and operating efficiencies that provide our clients with a premium work product and experience at an optimal value. Unwavering focus, reliability, and responsiveness are the hallmarks of every Murray Devine engagement.

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