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Chart Of The Week: 4Q 2012 Mid-Market Purchase Price Multiples 8.6x EBITDA

The spike in the fourth quarter rate is higher than the multiples registered for any year since 2007, according to data from the Leveraged Commentary & Data division of S&P Capital IQ. The purchase price multiple for all of 2012 was 7.9x EBITDA for mid-market companies, which have less than $50 million of EBITDA. Equity contributions from sponsors for the latest year rose to about 41.15 percent of deal valuations from 40.73 percent a year earlier. The fourth quarter rate of 42.34 percent contributed to the increase, LCD reported. The final quarter of 2012 featured a credit market that remained strong along with a bull market that continued in equities. (Click on the link at right for a larger version of the image.)