Data room: Europe bounces back

Value of exits from 53 deals in the TMT sector so far this year

Total value of buyouts in Europe during 2015 Q3

Total value of buyouts for the first three quarters of 2015
Source: CMBOR

The European private equity deal market is on target to produce its highest total value since 2007, according to data from the Centre for Management Buyout Research (CMBOR). 

After a strong Q3, totalling €20.3 billion ($23 billion), the value for buyouts in 2015 currently stands at €58.4 billion. 

However, with three months to go, it is expected that this year will surpass 2014’s €68.6 billion. In 2007, the high point, deals were significantly higher at €172.9 billion. 

The number of European deals for 2015 is set to be lower than last year, currently standing at 462 after Q3, compared with 669 for the whole of 2014. Importantly, however, the size of the deals have been significantly higher, with the average value standing at €126.3 million. Again, this is the highest average deal value since 2007’s €171 million. 

Total exit value in Europe is already over €100 billion and on track to break 2007’s record of €122 billion, but volatile equity markets have killed IPOs stone dead in the last quarter, with no successful flotations of private equity-backed companies between July and September.

TMT has enjoyed a particularly strong year for exits with €26.2 billion-worth recorded so far, putting it ahead of the second-placed sector, retail, with a cumulative value of €14.1 billion. Both sectors have completed 53 and 23 deals respectively.

With the UK continuing to lead the way for European deals, Germany is establishing itself as the second biggest buyout market, accounting for €10 billion-worth of deals so far in 2015. This is comfortably ahead of the third and fourth largest buyout markets in Europe for 2015: France (€4.9 billion) and Switzerland (€3.8 billion). 

“With the average European deal value already at its highest level since 2007 and three £1 billion-plus deals in the UK completed, we can safely say that big deals are well and truly back,” says Christiian Marriott, investor relations director at Equistone Partners Europe.

The data compiled by CMBOR, which is sponsored by Equistone Partners Europe, summarised trends in buyouts across Austria, Belgium, Denmark, Finland, France, Germany, Ireland, Italy, Netherlands, Norway, Portugal, Spain, Sweden, Switzerland, Czech Republic, Hungary, Poland, Romania, Turkey and the UK. The cut-off point was for deals completed by 26 June.