In need of a holiday... buyout execs’ busiest summer since ‘09

Michael Bow
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UK PRIVATE equity dealmakers had their busiest quarter over the summer after the number of deals clinched rose by more than a third.

The traditionally quiet summer lull between June and September sparked back into life with 511 deals signed in the UK, the busiest period since 2009.

This was up 35 per cent on the second quarter and about five per cent higher than the same quarter last year.

Of the 511 deals clinched, 404 of them were trade acquisitions and the rest were private equity sales, according to the figures from BDO.

“While we are seeing capital markets take a pause for breath, the appetite for deals in the private company arena is undiminished,” BDO partner Roger Buckley said. “There is a lot of cash chasing good quality deals and private equity funds continue to take advantage of the excellent conditions during 2014.”

Buckley added firms were trying to get deals done before next year’s general election.

The figures also show deal multiples – calculated as enterprise value to Ebitda – on trade deals remained resilient at 10 times earnings, versus a drop to eight times earnings on private equity deals, a four-year low.

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