Global Private Equity Deal Multiples and Trends - Quarter 3 2014

Working with Pitchbook, Hilco Global has published survey results on the 3Q 2014 PE Global Deal Multiples and Trends. The results offer a detailed picture of current deal structuring and investment multiples in the PE industry. Deal-making is examined through several lenses, including EBITDA and revenue multiples, debt-to-equity ratios, closing times and fees.

Some key findings from the report include:

  • 38% of transactions required at least 20 weeks to close, up from 17% in 1Q and 8% in 3Q 2013
  • Non-senior debt comprised 5% of the average capital structure in 2Q, an eight-quarter low
  • Less than a third of PE transactions included monitoring or transaction fees in 2Q, well below 2012 and 2013 levels
  • 96% of respondents anticipate revenue increases in their investments over the next 12 months

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Hilco Global's Solutions For Private Equity Firms and Hedge Funds

The Hilco Global platform offers Private Equity Firms and Hedge Funds innovative services and capital solutions to help facilitate and execute transactions, create liquidity and enhance the value of portfolio companies.

  1. Strategic partnerships providing management expertise and consulting in both opportunistic and distressed situations:
    • Hostess brand turnaround
    • Starbucks strategic real estate and lease repositioning services
  2. Principal and operator of strategic businesses and brand investments:
    • Purchasing and revitalizing the 75 year old Polaroid brand
    • Re-launching and expanding the iconic Halston retail fashion brand
    • Purchasing and revitalizing Kraus Flooring
    • Buying and restructuring HMV - a billion dollar music/entertainment retailer in UK, Canada, Australia
  3. Buyer and seller of diverse assets: A/R; Real Estate; Industrial Equipment; Intellectural Property; Orphan businesses, etc:
    • Coldwater Creek - completed the disposition of all retail assets and real estate
    • $70 million dollar deal for Cenveo to purchase National Envelope and purchase the A/R portfolio
    • Acquisition and redevelopment of the 38 million square foot steel mill owned by RG Steel
    • GM; Chrysler; Cooper Tire deal (the purchase and redevelopment of real estate and industrial)
  4. Private Equity Firm deal strategic/investment partnerships:
    • Linen's & Things, Brookstone
    • Coldwater Creek
    • Redwood Capital