2014 – Issue 3

Multiple: European private equity watch

Record high for IPO exits

H1 2014

Deal activity holds up

IPO market remains open

TMT sector makes progress

Greater primary buyout activity

Large deals in the pipeline

EY - Multiple: European private equity watch — Issue 3
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The exit market in Europe has continued to perform very strongly in 2014. Q2 set a record for PE-backed IPO quarterly value, with volume reaching its highest level since 1998. Looking ahead, the pipeline for the buyout market looks strong for the second half of the year.

Headlines, H1 2014

Deal activity edges up

  • Total deal value in the first half of 2014 was €25.8b, compared with €23.6b in the first half of 2013. At 312 deals, volume in the first half of 2014 is also up on the 279 recorded in H1 2013 and the 281 seen in the second half of 2013.

European IPO market remains open for private equity firms

  • The first six months of 2014 have seen private equity (PE)-backed IPOs rise to the highest level ever, with 31 flotations contributing €33.4b of value.

Average deal value tumbles

  • The average size of PE-backed buyouts has fallen by over a third in the first six months of 2014 to €82.7m. This is due to the drop in the number of deals valued at over €250m.

UK dominance continues

  • The UK was home to 60 of the 159 deals across Western Europe in Q2 2014. The next biggest contributor was Germany, with 19 deals.

Retail tills fail to ring, but TMT makes progress

  • The retail sector was very slow in the first half of 2014 with a total value of just €728m so far this year. Technology, media and telecommunications (TMT) has had a very strong first half. The sector has already topped €6.8b and is well set to beat last year’s total figure of €7.1b.

 European buyout — volume and value: at a glance