Echoes of 'irrational exuberance' return with multiples of 16 times EBITDA.

How could it be otherwise, the market looks closely at the exuberant liquidity in the hands of private equity , with 5,000 million euros available this year for new investments, accounting only for the capital of private Spanish managers ( dry powder , in the jargon). . The data shows that investors or limited partners (LPs) continue to see private equity as a shelter in the midst of the storm , which should make it easier for funds to divest with good returns. Despite initial doubts, 2021 has culminated with an investment volume of 7,494 million euros by private capitalin Spain. According to ASCRI data, this is the second best record in the sector in its entire history.

Already since last January, the processes announced, the return of large operations and the activity of the medium segment ( mid-market ) draw a propitious scenario for 2022, encouraged by the growing interest of international investors in supporting the growth of companies. Spanish. Nearly every industry is showing signs of recovery, with valuations rising and multiples rising . Amidst this exuberance, Bain & Company's latest report for 2022 puts multiples at an all-time high, an average of 16 times EBITDA .