EBITDA Multiples Hold Steady While Premiums Dip

Average multiples of EBITDA inched up slightly in the third quarter of 2005 to 11.74. That multiple is based on 71 deals that disclosed multiples data, compared with 89 in the second quarter, 85 in the first quarter, and 101 in the final leg of 2004. Premiums lost some ground in recent months, especially the one-day premium, which plummeted to its lowest level since the second quarter of 2004, when it hit 19.02. EBITDA multiples and premiums data shown here are based on all completed deals valued at $25 million or more that involve a U.S. company as either the buyer or the seller. Multiples greater than 30 are excluded from the data to keep from skewing the information. Including deals with outsized multiples can produce misleading figures. (c) 2005 Mergers and Acquisitions Journal and SourceMedia, Inc. All Rights Reserved. http://www.majournal.com http://www.sourcemedia.com