European Buyouts Power Ahead Boosted By Pass the Parcel Deals
02 August 2010 - 10:58PM
Dow Jones News
European private equity buyouts continue to gather steam with
activity fueled by a string of 'pass the parcel' deals in which
private equity firms sell on to each other rather than trade buyers
or to the public markets in an initial public offering, according
to a study released Monday.
There were 125 buyouts with a total value of EUR8.6 billion in
the second quarter marking an increase in volume for the fifth
consecutive quarter, the Centre for Management Buyout Research, or
CMBOR said, writing in Ernst & Young and Barclays Private
Equity's market review.
Although somewhat lower than the total value of deals in the
first quarter, which came in at EUR11.1 billion, value remains much
stronger than two years ago and is even topping levels posted in
the boom, Ernst & Young said.
"Buy-out transaction multiples have rebounded," said Joachim
Spill, EMEIA transaction advisory services leader at Ernst &
Young.
"In the first half of this year, the average price to earnings
on larger European deals was 17.9x - which is actually higher than
back in 2007 when the market was at its peak. This is interesting
because in 2009, PE [private equity] multiples were barely double
digits," he added.
The continued growth is being boosted by secondary buyouts where
one private equity firm sells to another private equity firm, and
even tertiary or quaternary buyouts, where the asset finds its way
into the hands of a third or fourth consecutive buyout owner.
-By Marietta Cauchi, Dow Jones Newswires; +44 207 842 9241;
marietta.cauchi@dowjones.com
Eurazeo (EU:RF)
Historical Stock Chart
From Jun 2024 to Jul 2024
Eurazeo (EU:RF)
Historical Stock Chart
From Jul 2023 to Jul 2024
Real-Time news about Eurazeo SE (Euronext): 0 recent articles
More Eurazeo News Articles