(Charlotte, NC – November 27, 2018)
US PE buyout multiples
Source: PitchBook Data
*As of September 30, 2018
What We’re Reading
Below are links to recent articles we found interesting (no partnerships expressed or implied).
(PitchBook Data) Buyout multiples remain elevated as fierce competition for prime assets persists. GPs, trying to spend down dry powder, face increased competition from already cash-rich strategics that received an extra windfall from the recent reduction to corporate taxes. Median EV/EBITDA multiples remained in double-digit territory at 11.9x YTD—a slight drop compared to 2017’s figure of 12.1x.
(The Wall Street Journal) It is hard to predict the effects of a warming planet, but the world of business and finance is trying to put prices on it. Agriculture is among industries on the front lines because a warming climate changes the crops that farmers can plant, affecting the productivity and value of their land. Right now, warming temperatures are expanding regions suitable for corn, grapes and other crops. Case study: Temperatures around La Crete, Alberta, are 3.6 degrees Fahrenheit warmer on average than in 1950 and the growing season is two weeks longer. So farmers are switching from wheat, canola and barley to corn. The new prospect of warmer-weather crops is helping lift farmland prices, with an acre near La Crete selling for five times what it fetched 10 years ago.
(The Economist) Americans celebrate Thanksgiving on November 22nd, and having gorged on turkey and cranberry sauce, will take the next day off as well to do some Christmas shopping. That represents a rare break in what, by global standards, is a Stakhanovite regime. In a typical year the average American works 100 more hours than a Briton, 300 more than a French employee and 400 more hours than a German.
(The Wall Street Journal) Retailers, wireless carriers and others crunch data to determine what shoppers are worth for the long term. The score can determine the prices you pay, the products and ads you see and the perks you receive.
(Wired) Patrick and John Collison have democratized online payments – and reshaped the digital economy in the process. Stripe, their payments company valued at $20 billion when it last raised money in September 2018, handles payments for Amazon, Booking.com, Lyft, Deliveroo, Shopify, Salesforce and Facebook.
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