Adevinta's $15 billion take-private
Saw that it's the largest tech take-private of the year. Blackstone / Permira's offer implies a 21x EBITDA multiple, but I'm not very familiar with tech LBOs that aren't enterprise SaaS. Seems like a slow growth business but solid margins. Wondering if it means anything for sponsor / tech LBO activity going forward in this environment.
Citi is the sell-side advisor to Adevinta and GS is the buy-side advisor to BX / Permira.
Happy to hear everyone's thoughts.
Well, based on the most helpful WSO content, tech LBOs can indeed be a bit of a different beast compared to other sectors. The high EBITDA multiple you mentioned is not uncommon in the tech sector due to the high growth rates and solid margins these companies often have.
As for what this means for sponsor/tech LBO activity going forward, it's hard to say for certain. However, it's clear that there's still a lot of interest in the tech sector, even for companies that might be considered "slow growth". The fact that a major player like Blackstone is involved could potentially signal confidence in the sector, which might encourage more activity.
As for the roles of Citi and GS, it's not surprising to see these big names involved in such a significant deal. They have extensive experience and resources to navigate complex transactions like this one.
Remember, though, that every deal is unique and the specifics can vary widely. So while we can make some general observations, it's always important to consider the specific context of each deal.
And as always, keep an eye on the bananas! They can sometimes be a good indicator of where the market is heading.
Sources: End to a Rough Quarter | The Daily Peel | 6/30/22, Cross-Atlantic Investment Shift | The Daily Peel | 7/12/2023, Winning at a Loser's Game? Control, Synergy and the ABInBev/SABMiller Merger, What's happening during live deals?
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