Multiple: European buyouts watch

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Q2 2012: Highlights

  • European buyout activity drops, with only €9.1b of deals completed in Q2 2012 – 34% lower than Q1, and less than 60% of Q2 2011’s value
  • Volumes are down by a similar amount, and the average deal price is down to €82m
  • While short-term activity is dictated by events outside private equity control, availability of capital keeps medium-term prospects healthy
  • Activity in Germany and France continues on the downward trajectory identified in Q1 as companies assess the impact of turmoil in the Eurozone
  • The UK accounts for more than a third of deals, but values drop from a strong €6.6b in Q1 to  €3.3b in Q2
  • By value, Sweden is the second most active market in Q2, with €2.0b from 11 deals
  • Two mega-buyouts were completed in Q2 with a total value of €3.4b: Sweden’s Ahlsell was bought by CVC for €1.8b and the UK’s Misys was taken private by Vista Equity Partners for €1.6b
  • With 83 deals, manufacturing is the most active sector in the first half of 2012, but TMT is still the largest in terms of deal value (€5.3b)
  • Exits in Q2 realized €9.5b, with 22 secondary buyouts generating €4.4b
  • There were no IPOs in Q2, but only five exits through insolvency

Read our insights for Q2 2012.