01/07/2020

The Price Level of Buyout Transactions is Reaching its Peak

In an article in the VC magazine, Christian Saxenhammer points out the situation on the markets. Prices have reached levels that are sometimes hardly justifiable.

The Price Level of Buyout Transactions is Reaching its Peak

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“The market is booming, prices are at record highs,” says Christian Saxenhammer, Managing Director of Saxenhammer & Co.. EBITDA purchase price multiples of six or seven are normal. In certain industries, even higher levels are reached. The fact that price is not the only selling criterion can partly explain the high sales volumes. Buyout transactions often involve more than price. Points like networks, industry experience and strategic support are important criteria. However, the current turbulent economic situation brought the markets to a turning point.

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Saxenhammer is regularly featured in media outlets and publishes sector updates.