2015 – Issue 1

Multiple: European Private Equity Watch

Mid-sized deals at the fore of European buyout market

Outlook for 2015

Strategic buyers circling assets

IPO still a viable exit route

Availability of capital

Megadeal trend will continue

Improved macroeconomic outlook

Large deals in the pipeline

EY - Multiple: European private equity watch — Issue 1
  • Share

The exit market in Europe performed very strongly in 2014. Total exit value was the highest since 2007. Private equity-backed initial public offerings remained a popular exit route. With the level of mid-size deal activity the highest since 2008, and corporates rejoining the market, the outlook for 2015 is bright.

Headlines in 2014

Deal activity at highest level since 2008

  • Total deal value in 2014 was €67.3b, compared with €59.4b in 2013. At 643 deals, volume in 2014 is also up on the 563 recorded in 2013. Both deal value and volume reached levels not seen since 2008.

Record high for European IPO exits

  • The year saw PE-backed IPOs rise to the highest level ever, with 43 flotations contributing €44.0b of value in 2014.

Mid-market drives new buyouts

  • The average size of new PE-backed buyouts has been holding up in 2014 (to €104.7m) compared with 2013. This is due to the rise in the number of deals in the €100m–€500m range, which is at its highest since 2008.

Nordic region provides top three deals

  • The UK accounted for deals totaling €19.9b in 2014, followed by Germany’s €12.6b and France’s €9.4b. The Nordic region led in terms of growth. It provided the top three deals, with the two largest deals originating in Norway.

TMT, financial services and health care make progress

  • TMT, financial services and health care have had a strong year in Europe, with increased deal value compared with 2013.

 European buyouts – volume and value: at a glance