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Welcome to the Private Company Price Earnings Ratio ("PER") Database, compiled and analysed by members of the Leading Edge Alliance, a global alliance of major, independently owned, accounting and consulting firms.

This database provides essential information on the pricing of private company sales and acquisitions. It is based on information recorded by expert Corporate Finance advisers across Europe on actual transactions. It therefore reflects the actual values in the deal, i.e. the actual consideration paid and the real underlying profits being bought/sold. This provides far more meaningful data than that shown by other measures that are restricted to only using publicly available information.

VALUATION TRENDS

The graph shows the rolling six month average ratio between enterprise values and underlying profits for deals recorded by members. click here to read latest summary

CURRENT VALUATIONS

There has been a slight recovery in 2010 in private company prices (as a multiple of profits). This probably relates more to the historically low prices in 2009 being unsustainable, with fewer quality business being sold during that period.
Year Average EBIT ratio
 2005  6.4
 2006  6.6
 2007  7.1
 2008  6.3
 2009  5.3
 2010  5.1

Contacts


For more information on the ratios or for advice on selling or buying businesses, contact your local LEA member as shown on
www.leadingedgealliance.com
For more information on the database contact Mark Greaves at www.francisclark.co.uk, email mag@francisclark.co.uk.