Proprietary

MIDDLE MARKET

Database

Q4 2019

Valuations & Opinions Group

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Inside this Issue

Private equity backed portfolio company performance remains robust as market participants remain cautiously optimistic.

Click below to navigate to each page

  • Key Takeaways
  • Overview of Q4 2019 Database
  • Lincoln Middle Market Index
  • Middle Market Portfolio Company Performance
  • Enterprise Value and Leverage Multiples
  • Impact of EBITDA Adjustments
  • Quarterly New Issuances and M&A Transactions
  • Credit Market Environment
  • Distressed Assets
  • Valuations & Opinions Group Key Contacts

Historical Performance - Enterprise Value

While both the Lincoln MMI & S&P 500 enterprise values improved in Q4 2019, the increase in middle market enterprise value quarter-over-quarter was less than the growth observed in the public markets

Note: S&P 500 EV excludes financial companies for which enterprise value is generally not meaningful; including such companies produces qualitatively similar results

The privately-held middle market has historically been correlated with the public markets though with less volatility, as further exemplified over the last year of relatively volatile public markets

Industry Performance - Enterprise Value

The disparity in performance between cyclical vs non-cyclical & high cash flow industries expanded throughout the year