The M&A market is in full swing and prices and multiples have reached very high thresholds. We will show the evolution of this differential over time. Because of an unlimited amount of capital flowing through the PE world, multiples paid by groups have reached par or close to par with some strategic investors. Nevertheless, these PE groups do not usually benefit from some of the synergies and attributes of strategic investors which makes these investments more risky. The huge number of PE Funds is an opportunity for Sellers as the choice of buyers is unlimited. Moreover, PE buyers can sometimes have benefits versus strategic investors, especially when the business has 2-3- different divisions and when strategics would be interested in just one of these.
Marc Paiement, Senior Partner - Novacap, Toronto