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"The $46 billion-in-annual revenue U.S.
lawncare and landscaping space is, by all
accounts, ripe for consolidation," writes
Judy Radler Cohen in the Mergers &
Acquisitions Report. Michael McFadden,
co-CEO at Goldsmith Agio Helms, who advised
Horizon on the deal, said about takeout
valuations in the lawn care space, "For a
good company, it's eight to 10 times EBITDA."
Mergers & Acquisitions Report then asked if
buyers are willing to pay that right now, to
which McFadden responded, "Yes, absolutely."
Source: Cohen, Judy, Radler. "Lawncare
Sector Sows Consolidation Seeds" Mergers &
Acquisitions Report, March 12, 2007, pg. 1.
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"Takeouts in the $623 billion-in-annual
revenue U.S. trucking industry have been
driving along a stagnant multiples highway,"
writes Joshua Hamerman in the Mergers &
Acquisition Report. "Thomson data
indicates that average multiples in 2006 were
4.34 times EBITDA and 0.59 times revenue,
based on seven announced public deals, while
2005 saw 11 announced deals and average
valuations of 5.9 times EBITDA and 0.35 times
revenue."
However, these multiples probably reflect
larger companies, and the majority of deals
in the space involve private parties. One
banker in the transportation and logistics
space reports the median EBITDA multiple for
trucking firms has been 6.8 times and the
average has been 7.6 times. that over the
last five years."The second half of this year
should see
robust deal flow, said the New York-based
banker, speaking anonymously."
Source: Hamerman, Joshua. "U.S. Trucking Takeout Valuations Stall." Mergers & Acquisition Report. April 23, 2007, pg. 1. |
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"According to the Private Equity Analyst, a
Dow Jones publication, a record $215.4
billion poured into private equity in 2006.
Of that, $148.8 billion went toward buyout
funds, 33 percent greater than 2005, the
previous record year," writes Paul Sweeney in
Financial Executive.
Source: Sweeney, Paul. "Private equity
hitting warp speed." Financial
Executive. March 1, 2007.
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Many of our clients ask us to look for comparable
acquisitions because we know what to look for and
where to find it. We subscribe to Mergerstat,
Thomson Financial M&A, Done Deals and Pratt's
Stats. We've also used Bureau van Dijk's Zypher
database, the most complete source of global
transactions. Industry multiples can often be found in
journal articles, as shown in the abstracts above, in
addition to investment bank reports.
Sincerely,
Jan Davis
JT Research LLC
email:
jt@jtresearch.com
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