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
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