Valuation multiples – Q1 2025
The comparables method is one of the most commonly used approaches for estimating a company’s value, especially for well-established companies. This approach involves estimating the value of a company by comparing it with other similar companies, based primarily on their profitability. Although the best comparison is the multiple at which a similar company has recently sold, publicly listed companies, whose financial data is publicly available, offer an interesting point of reference for establishing valuation multiples for SMEs. The multiples observed on the stock market are generally adjusted downwards to take account of differences in size, increased operational risk and the lower liquidity of SME shares compared with listed companies. Discover the multiples by business sector that we have compiled below as at March 31, 2025.
Economic indicators – Q1 2025
Access to credit, company valuations, buyer appetite: sales, acquisitions and capital raising operations are directly influenced by the macroeconomic environment. For a better understanding of current trends, we offer a summary of the main economic indicators for the first quarter of 2025. This perspective allows us to situate the conditions in which M&A operations are evolving today, between interest rate cycles, commercial uncertainties and a slowdown in demand.
M&A trends – March 2025: acquisitions, management buy-outs (MBOs) and fundraising
Each month, we take a look at the latest M&A deals to gain a better understanding of sector dynamics. Here are those that caught our attention in March in Luxembourg, Belgium and France: Fortius, the Luxembourg art storage specialist, is taken over by its management with the support of AKCEAN Fortius has been taken over by its directors Claude Hermann and François Duverger via a Management Buy Out, accompanied by AKCEAN as M&A advisor. Based at the Luxembourg High Security Hub (formerly Freeport), the world’s second largest free port dedicated to art, the company specializes in the storage and logistics of works of art. This acquisition strengthens Fortius’ local roots and consolidates the commitment of its management team to its customers. Luxembourg asset management company Lemanik AM acquired by Blackfin Capital Partners Blackfin Capital Partners, an investment fund specializing in financial services, has completed the acquisition of Lemanik AM, a Luxembourg-based independent asset management company with €30 billion in assets under management. The transaction will enable Lemanik AM to continue its development, while benefiting from Blackfin’s support for future acquisitions. Fiduciaire Jean-Marc Faber, a Luxembourg-based provider of accounting and administrative services, comes under the control of Anacap The British fund Anacap has become the majority shareholder of Fiduciaire Jean-Marc Faber, a Luxembourg-based provider of accounting, fund, social secretarial, tax and payroll services. The company now supports over 1,800 customers and has a team of 70 employees. The management team remains committed to accelerating growth and actively participating in the consolidation of the sector. ARK Capture Solutions, Walloon decarbonation start-up, raises €2.2 million from Aperam Ventures and others ARK Capture Solutions, a Walloon start-up developing an innovative process to capture CO2 from industrial fumes, has raised €2.2 million. The round was led by Aperam Ventures (the steel group’s investment vehicle) and the Brussels-based Seeder Fund, with support from public funds(Wallonie Entreprendre, InvestBW and Noshaq). A demonstration unit is planned for 2026, with commercialization expected as early as 2027. Staphyt, a family-owned agricultural research group based in Hauts-de-France, opens up its capital to Unigrains and several partners Based in the Hauts-de-France region, French family-owned agronomy research group Staphyt welcomes Unigrains, Bpifrance, Nord Est Partenaires and IRD Invest as minority shareholders. With 600 employees and sales of over €45 million, the group aims to further diversify, strengthen its international presence and pursue its external growth strategy. #M&A #Mergers & Acquisitions #Market trends #Corporate strategy #Luxembourg #Belgium #France Sources: Paperjam, L’Echo, Les Echos, S&P Capital IQ Pro
Our successes: Fortius management acquires the company (MBO)
AKCEAN supported the management of Fortius in the takeover of the company. AKCEAN acted as financial advisor to the management of Fortius, a Luxembourg company specializing in the storage and logistics of works of art, in connection with its management buyout. The buyers Claude Hermann, CEO, and François Duverger, COO, have played a key role in the development of Fortius for almost a decade. As key players in the company’s growth, they have chosen to take control through a Management Buy Out (MBO), thus affirming their long-term commitment and their desire to ensure its continuity and development. Fortius – Recognized expertise in art storage and logistics Located at the Luxembourg Freeport, the world’s second largest free port dedicated to art, Fortius is a key player in the storage and logistics of works of art. Thanks to its high-security infrastructure and optimal conservation conditions, the company provides a secure environment for the collections entrusted to its care. In addition to storage, Fortius offers complete collection management, including transport organization, customized packing and crating, as well as administrative and customs management. Active for over 10 years, the company generates sales of around 2 million euros. A strategic turning point for the company Claude Hermann, CEO of Fortius, comments: “This acquisition marks an essential step in strengthening our local roots and ensuring the continuity of our development. By taking over the company, we are consolidating our commitment to our customers by guaranteeing the continuity and excellence of our services. We would like to thank AKCEAN for its support throughout the process, as well as all the advisors who contributed to the success of this transfer.”
M&A trends – February 2025: acquisitions, disposals and fundraising in Luxembourg and Belgium
Each month, we analyze M&A transactions to explore current sector trends. In February, here are the deals that made the news: IQ-EQ acquires Agama, a specialist in regulatory compliance in France and Luxembourg IQ-EQ, an international group based in Luxembourg and specializing in services for investment funds and companies, has acquired Agama, an independent regulatory compliance company operating in France and Luxembourg, with over 50 employees. This acquisition enables IQ-EQ, which has over 5,800 employees in 25 jurisdictions, to strengthen its regulatory compliance offering. Partao, a Luxembourg-based start-up developing a spare parts marketplace, raises €3 million Partao, a Luxembourg-based start-up developing a marketplace dedicated to spare parts for tractors and construction machinery, has announced a €3 million investment from Mangrove Capital Partners, a Luxembourg-based venture capital fund. This investment is aimed at accelerating the company’s development, with a second round of financing planned before the end of the year. Inui Studio, a Luxembourg company specializing in software and hardware development, raises €1.5 million Inui Studio, a Luxembourg-based niche player in software and hardware development, announces that it has raised €1.5 million from CK Group, with financial support from the French Ministry of the Economy. The funds will be used to accelerate the development of SkaLink, a cloud-based customer support solution based on live video calls. CK Group, a Luxembourg-based player with over 220 employees, operates in office technology and sports complex management. Mega, energy supplier from Liège , acquired by the Swiss MET Group The Swiss MET Group, a European player in the energy sector, acquires Mega, a Liege-based energy supplier, from private investors and its founders. Mega, one of Belgium’s top five low-cost household energy suppliers, sells electricity and gas to over 500,000 customers. The company also offers mobile telecommunications and has sales of €640 million. MET, a major player in Europe’s energy sector, generated sales of €24.5 billion in 2023 and sold almost 88 billion cubic meters of natural gas. The Spice Factory, Wallonia’s spice champion, acquired by Gimv Gimv, a European investment company based in Antwerp and listed on Euronext Brussels, acquires a majority stake in The Spice Factory, a Walloon specialist in private-label herbs and spices. The company, which achieved sales of over €57 million in 2023 with around 100 employees, sources, processes and markets its own-brand and private-label products. Gimv acquires shares from Davy De Muyer and Gilde Equity Management, shareholders since 2014 #M&A #Mergers & Acquisitions #Market Trends #Corporate Strategy #Luxembourg #Belgium Sources : Paperjam, L’Echo
Vendor credit and Earn-out: Two levers to facilitate an M&A transaction
When acquiring or selling a business, finding common ground on price is often one of the main challenges. Differences in perception between seller and buyer as to the value of the business can slow down or even jeopardize a transaction. Solutions to overcome these differences include seller’s credit and earn-out. These two mechanisms, although pursuing different objectives, can be complementary and facilitate successful negotiations. AKCEAN can help you set them up and negotiate them to maximize your project’s chances of success. Vendor credit: structured financing to facilitate acquisition Vendor credit is a financing arrangement in which the seller agrees to defer payment of part of the sale price by granting a loan to the buyer. In other words, the buyer does not immediately pay the full amount agreed: a fraction of the price is repaid progressively, according to a negotiated schedule including an interest rate and, in some cases, guarantees for the seller. This mechanism is particularly useful for buyers seeking to optimize their financing, by enabling them to reduce their initial capital outlay, to supplement or limit their recourse to bank loans, and to access conditions that are often more flexible than those offered by financial institutions. In practice, the vendor loan can represent a significant proportion of the sale price, with repayment generally spread over two to five years. Its interest rate, often lower than that of bank financing, makes it attractive to the buyer. Although it involves a deferred payment, the seller’s credit differs from a simple instalment plan in that it is structured. Unlike a traditional deferred payment, which is based solely on an agreement to pay in several instalments, a vendor credit formalizes a financial debt with a defined interest rate, and may include guarantees (pledge, surety). It thus offers the seller greater protection in the event of difficulties on the part of the buyer. Vendor credit is particularly relevant in management buy-outs, where employees take over the company. Since they do not always have the funds to finance the acquisition immediately, they can use the company’s future profits to gradually repay the vendor loan. While vendor credit facilitates the transaction, it is not without risks for the seller, particularly if the buyer encounters difficulties in honoring its commitments. It is therefore important to assess the buyer’s solvency and financial prospects, while providing solid guarantees. Earn-out: a price supplement based on future performance An earn-out is a mechanism whereby the purchaser pays a price supplement conditional on achieving a certain level of performance after the sale. The criteria, defined in advance, may be financial (sales, profitability) or non-financial (retention of strategic customers, maintenance of key contracts, etc.). This mechanism is particularly useful when the seller and buyer find it difficult to agree on a fixed price, notably due to uncertainties about the company’s future performance, or when the seller feels that the growth potential has not yet been fully reflected in past results. In concrete terms, an initial price is determined, with a possible top-up paid according to the objectives achieved. This mechanism reduces the buyer’s risk, while enabling the seller to obtain a higher valuation if performance follows. It is often structured on the basis of the results achieved in the year of sale, particularly during the period of support for the seller. However, its implementation requires particular care. Performance criteria must be precisely defined, and calculation methods fully transparent. Failing this, ambiguities can lead to disputes, particularly if the seller is no longer involved in the management of the company after the sale. Vendor credit and earn-out: complementary These two mechanisms, far from being exclusive, can be used in conjunction to meet the buyer’s financing constraints, while ensuring that the seller receives a fair valuation for his business. For example, a transaction may involve an upfront payment, supplemented by a vendor loan spread over several years, and an earn-out based on future performance. This combination offers greater flexibility in negotiations, and aligns the interests of seller and buyer with the company’s long-term viability and growth. Are you considering a sale or acquisition and would like to explore these mechanisms? Contact our team for a personalized analysis to optimize and secure your transaction.
M&A trends – January 2025: sales and fundraising in Luxembourg and Belgium
Each month, we analyze M&A deals to explore current sector trends. In January, here are the deals that made the news: Luxembourg-based cleaning company Propper joins Belgian group XLG Belgian family-owned group XLG announces the acquisition of Propper, a Luxembourg-based cleaning and maintenance company with over 300 employees. This acquisition enables XLG to strengthen its presence in Luxembourg and broaden its portfolio of services. The group now has over 5,500 employees in Belgium and Luxembourg, and is positioned as a major player in professional cleaning, industrial maintenance and facilities management. IF Payroll & HR, a specialist payroll management company in Luxembourg, joins the Securex Group Securex, a Belgian and international HR services group, acquires IF Payroll & HR, a company specializing in payroll management in Luxembourg, employing around fifty people. This transaction makes Securex the leading provider of HR and payroll services in the Luxembourg market, where the group has been established for over twenty years. The two entities now employ 110 people and support 1,700 customers, with over 40,000 salaries processed each month in Luxembourg. By 2023, the Securex Group had consolidated sales of €317 million and 1,900 employees in Belgium, Spain, the Netherlands, France and Luxembourg. Luxembourg cybersecurity start-up Passbolt raises $8 million Passbolt, the Luxembourg-based open-source password manager, has raised $8 million in Series A financing. The round was led by Airbridge Equity Partners, a Dutch tech fund, with the support of historical investors (including Expon Capital, ScaleFund and LBAN). Passbolt offers companies and organizations of all sizes a secure, centralized solution for managing and sharing passwords, access and confidential data. EXKi, the Belgian restaurant chain, raises €15 million EXKi, the catering chain specializing in healthy, sustainable meals, announces a €15 million capital increase to relaunch its business. Following a capital increase, Iris Belgium, a company backed by wealthy French families, becomes the sole shareholder. Faced with financial difficulties, and announced by its CEO as being on the verge of bankruptcy a few months ago, the fund-raising will enable the company to launch a comprehensive recovery plan. The company has 77 restaurants, operated both directly and under franchise, mainly in Belgium (38), France (32) and Luxembourg (4). TKM Industries, the Walloon industrial SME, acquired by the Belgian fund Whitestone Whitestone, an investment holding company active in asset management and private equity, listed on Euronext Brussels, has acquired TKM Industries, a Liege-based company specializing in the machining of metal parts, with sales of €13.5 million in 2023. This acquisition was carried out via Treestone, a Whitestone investment vehicle initially created for the acquisition ofIso-Tech Belgium in 2019 (insulation specialist) and subsequently used for the acquisition ofAtima-TPIM in 2021 (composite and aluminum materials manufacturer). The three businesses will now be grouped together, offering a complete materials value chain, from design to production of individual parts and complex assemblies. With the integration of TKM Industries, Treestone becomes an industrial group with around 100 employees. #M&A #Mergers & Acquisitions #Market Trends #Corporate Strategy #Luxembourg #Belgium Sources: S&P Capital IQ Pro, Capital Finance, Paperjam, L’Echo, Les Echos
Valuation multiples – Q4 2024
When it comes to valuing a company, the comparables method is frequently used, especially for well-established businesses. This approach involves estimating a company’s value by comparing it with other similar companies, based primarily on their profitability. Although the best comparison is the multiple at which a similar company has recently sold, publicly listed companies, whose financial data is publicly available, offer an interesting point of reference for establishing valuation multiples for SMEs (small and medium-sized enterprises). The multiples observed on the stock market are generally adjusted downwards to take account of differences in size, increased operational risk and the lower liquidity of SME shares compared with listed companies. Discover the multiples by business sector that we have compiled below as at December 31, 2024.
Economic indicators – Q4 2024
M&A activity is closely linked to changes in the economic environment: access to financing, company valuations and regulatory changes. The indicators detailed in our visual below offer a view of the current economic and financial landscape, to guide strategic M&A decisions.
M&A trends – December 2024: acquisitions and fundraising in Luxembourg and Belgium
Each month, we analyze M&A deals to explore current sector trends. In December, we selected acquisitions in the retail and fitness sectors, as well as fund-raisings in renewable energies and fintech in Luxembourg and Belgium. Delhaize Group adds the last two Alima supermarkets to its network Delhaize Luxembourg expands its network by taking over the two Alima supermarkets in Luxembourg City and their 37 employees. This acquisition brings Delhaize’s network to 62 stores in Luxembourg. Alima, a family business founded in 1951, had been facing financial difficulties in recent years. Colruyt Group adds NRG to its Jims fitness chain The Colruyt Group has strengthened its position in the fitness sector by acquiring NRG, a chain of 42 gyms located mainly in Flanders, and integrating it into its Jims network. This strategic acquisition doubles the size of Jims, which will now have 82 gyms, and positions the group as number two in the Belgian fitness sector, behind Basic-Fit and its 229 gyms. Belgian start-up Bnewable raises €40 million in financing Bnewable, a Belgian start-up specializing in optimizing self-consumption of renewable energy for industrial companies, has raised €40 million, notably from the French fund Rgreen Invest, the family office Dovesco (De Clerck family) and Wallonie Entreprendre, the Walloon public fund. Bnewable enables manufacturers equipped with solar panels or wind turbines to optimize their self-consumption using batteries and software, while reselling surplus electricity. Belgian photovoltaic specialist Solora raises over €15 million Solora, a Ghent-based company providing installation services for solar panels, charging stations, energy storage batteries and corporate energy management solutions, has raised between €15 and €20 million from BNP Paribas Fortis and the Junction Growth Investors fund. The company plans to intensify its installation activities while expanding its international presence, particularly in France and the Netherlands. Brussels-based fintech Digit89 raises almost €2 million Digit89, a Brussels-based platform specializing in reverse factoring, has raised almost €2 million. With just one click, suppliers can request payment of invoices in advance of the due date with their customers. The platform already works with the majority of French-speaking Belgian hospitals, offering their suppliers accelerated payments. Digit89 now aims to expand to Flemish hospitals, enter the French market and diversify into other sectors. #M&A #Mergers & Acquisitions #Market Trends #Corporate Strategy #Luxembourg #Belgium Sources: S&P Capital IQ Pro, Capital Finance, Paperjam, L’Echo, Les Echos
