Multiple: European buyouts watch Q3 2012
During the first nine months of 2012, the value of healthcare sector deals was second only to TMT. The business and support services buyout market is the third-most active, while deals in the financial services sector continue to remain elusive.
Healthcare — €5.9b from 30 deals
So far this year, there may have only been 30 deals, but the combined value of €5.9b puts the healthcare sector only €376m behind TMT’s 59 deals.
These figures will have been boosted by BSN Medical, the German bandages maker, which Sweden’s EQT fund bought from Montagu for €1.8b following a rare auction process.
"When things are more difficult, performance starts to vary by sector, by segment, by geography, and the key is identifying what you really want to go for." - Mark Gregory, Chief Economist, Ernst & Young, UK
Business and Support Services — €5.8b from 71 deals
With €5.8b in deal value so far this year, the business and support services buyout market is the third-most active, and second-most active behind the manufacturing sector by number (71 deals so far this year).
Wood Mackenzie, the mining consultancy, was the second largest deal during the third quarter; at €1.4b it was one of only four mega deals in the quarter.
Financial Services — €1.7b from 14 deals
Deals in the Financial Services sector continue to remain elusive despite expectations that regulatory reform across the continent would drive activity. To date there have been 14 deals valued at €1.7b; at the same stage last year there had already been 24 deals, valued at €3.2b.
In the third quarter there were only four deals completed, the largest of which was international tax reclaim service provider Global Blue (€1b), sold by Equistone in Switzerland.
Industry sector volume and value
Note: Year 2012 to end Q3 only
Source: CMBOR; Equistone Partners Europe: Ernst & Young.