Partner Article

Private equity deal values at 3 year low

The value of private equity deals across the UK has taken a sharp downturn, reaching a three-and-a-half year low.

Private equity deal values declined 36% and the number of deals were down 25% compared to the same time last year.

According to BDO’s latest Private Company Price Index/Private Equity Price Index, trade buyers were prepared to pay higher multiples to fund acquisitions and drive growth, despite the declining value of deals.

Tim Clarke, M&A Partner at BDO in the North West, says: “As we have been predicting the public markets have begun to return as an exit option for private equity funds. If the markets remain calm this would facilitate further profitable exits at the bigger end of the scale.

“In the mid-market, we have seen a renewed level of interest by private equity in sectors such as leisure, particularly in the specialist side of the market such as high-end holidays. Meanwhile, advances in cloud computing have stimulated a real bounceback in technology M&A with both private equity and trade buyers keen to play a part.”

This was posted in Bdaily's Members' News section by Tom Keighley .