Leveraged Loan Insight & Analysis – 10/31/2022

US LBO purchase price multiples dropped in large corporate market last quarter


As concerns about the potential for a recession continue to cause heightened volatility across the market, more focus is put on enterprise valuations. Last quarter, LBO purchase price multiples in the large corporate syndicated market declined to 10.8x, the lowest since 4Q18. Of the 9 LBO deals tracked with purchase price multiples in 3Q22, only 3 were for 12 times or higher.