Private equity slips in stakes

Michael Bow
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PRIVATE equity funds have started to slip behind their private company rivals in the bidding war to snap up firms for the first time since 2007, research published today shows.

Average price to earnings multiples paid by trade buyers in this quarter have surpassed private equity prices by 130 basis points.

BDO partner Andrew Ware, whose firm conducted the research, said: “We may also be witnessing a shift from private equity out-bidding private companies for assets.”

The 130 bps gap is the widest on record.