Rock Products

NOV 2018

Rock Products is the aggregates industry's leading source for market analysis and technology solutions, delivering critical content focusing on aggregates-processing equipment; operational efficiencies; management best practices; comprehensive market

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26 • ROCK products • November 2018 www.rockproducts.com Figure 4: Private Equity Valuations & Leverage Q2 2016 Q3 2016 Q4 2016 Q1 2017 Q2 2017 Q3 2017 Q4 2017 Q1 2018 Q2 2018 # of Transactions 76 36 57 65 57 52 70 63 47 TEV/EBITDA 7.1x 6.6x 6.8x 6.6x 7.2x 7.6x 8.0x 6.8x 7.4x Total Debt/EBITDA 3.9x 3.8x 3.7x 4.0x 4.2x 4.5x 4.3x 4.2x 3.9x Senior Debt/EBITDA 3.3x 3.2x 2.8x 3.0x 3.6x 3.7x 3.5x 3.4x 3.2x Private Equity Transaction Activity & Valuations GF Data Resources, a provider of detailed information on business transactions ranging in size from $10 million to $250 million, provides quarterly data from over 200 pri- vate equity firm contributors on the number of completed transactions. Figure 4 provides the number of completed transactions from GF Data contributors, the average Total Enterprise Value (TEV)/EBITDA multiple and the average amount of debt utilized in the transaction computed as a multiple of EBITDA. The data, although not industry specific, shows transaction activity declining sharply from high levels achieved during the prior quarter while average valuation multiples rebounded from 6.8x in Q1 2018 to 7.4x in Q2. Notable Transactions Several notable transactions were completed or announced in the industry during Q2 2018. One of the more notable aggregates industry transactions is highlighted below. Source: GF Data Industry Market Report Whether you are drilling thru a mountain or a mole hill, we've got a durable, dependable solution for you. If you need tools for construction, mining, or demolition-we're the only name you need to know. Call (800) 872-6899 or vs Brunnerlay.com Brunner � Lay "Quality First" since 1882

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