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Business Valuation, Recapitalization, Selling Your Business

Debt Capital Market Update - Q4 2019

TKO Miller Debt Capital Market Analysis 

  • Leverage multiples remain at peak levels in M&A transactions due to an aggressive lending environment
  • Leverage multiples, as measured by Sr. Debt / EBITDA, increased from 3.8x in 2018 to 4.1x in 2019 (as depicted in the graph below)
  • Transactions are utilizing more Senior Debt in response to rising purchase price multiples compared to 2018 levels (as depicted in the graph below), signaling that lenders are in competition with one another and are willing to stretch to get deals done
  • Leverage conditions are expected to remain highly supportive over the next 8-10 months, but a halt in business spending, a global economic downturn, or uncertain geopolitical conditions are capable of shifting conditions back to lower, more historical levels

Total Debt/EBITDA Multiples 


Source: November 2019 GF Data Leverage Report

Steve Yahnke
By Steve Yahnke
on Feb 16, 2020 9:00:00 AM
   
Debt Capital Market Update - Q4 2019

TKO Miller Debt Capital Market Analysis 

  • Leverage multiples remain at peak levels in M&A transactions due to an aggressive...
Steve Yahnke
By Steve Yahnke
on Feb 16, 2020 9:00:00 AM
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