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Ernst & Young: UK buy-out market value increases 23% in 2012
December 23, 2012
By Rob Starr, Content Manager, Big4.com
The UK’s Private Equity (PE) buyout market proved to be the most bankable PE market in 2012, boosted by Sterling’s attractiveness as a relative safe haven for investors who are keen to continue deal making in Europe without exposing themselves to Eurozone volatility.
The value of UK buyouts has risen 23% so far this year to £15.7bn from £12.7bn in 2011, and the number of deals recorded rose slightly to 189 compared to 187 over the same period. Average deal size in the UK has also increased to £84m, up from £68m, according to the latest data published by the Centre for Management Buyout Research (CMBOR) and sponsored by Ernst & Young and Equistone Partners Europe.
Buyout numbers as a percentage of UK M&A have risen to 45% in the first nine months of this year, compared to 33% in 2011. As a proportion of M&A, buyouts values have risen to 82% for the first nine months compared to 61% for the whole of 2011.
Deal activity and values in the mid market held up well in 2012. In the deal range £50m – £250m there were 39 deals equating to £4.1bn in value, versus 36 deals and £3.8bn respectively in 2011. Total number of deals so far this year in the £250m to £1bn range totalled 10 with a combined value of £6.0bn, compared to 11 and £5.8bn in 2011.