Support Services

From logistics to consulting – we have a wide range of specialists across this broad sector

How much are companies worth in the Support Services sector?

The following 3 graphs will give private business owners a broad indication of the value of their business:

1. The Enterprise Value to EBITDA* multiples on which comparable listed companies are trading

Support Services graph 1 reversed-1

At the end of H1 2019, the global, all market average Enterprise Value to EBITDA* multiple for listed support services companies was 13.6x. This was greater than the previous six months and up on the previous year, when listed support services companies were trading on a multiple of 13.0x. Within the support services sector, trading multiples varied between 12.5x and 17.6x across the range of sub-sectors. Smaller businesses generally traded on lower multiples.

* EBITDA is Earnings Before Interest, Tax, Depreciation and Amortisation
† Note, the Enterprise Value to EBITDA multiples above are for listed businesses, and it is generally the case that privately owned businesses are valued at a discount. Listed company data was accurate at 01/07/19

2. The multiple of EBITDA paid by acquirers of comparable businesses

Support Services graph 2 reversed v2-1

The average multiple of EBITDA paid globally in support services transactions has fluctuated somewhat over the past few years. It currently stands at 13.1x. When reviewing these multiples we break out  businesses in the range $5-150m, as they tend to have unique attributes which affect their valuation. Smaller businesses have generally been sold on lower multiples.

3. The volume of M&A transactions and acquisitions

Support services graph 3 reversed-1

In H1 2019, there were 2,930 transactions globally in the support services sector. This is down on the preceding 6 months, when there were 3,195 transactions. Although volumes have slightly dropped, the high number in the last 6 months suggests demand for support services businesses remains buoyant.

For further information as to how these valuations and statistics are computed, and their impact on your transaction, please contact us.