UK buyout market plunges £4.7bn in Q408

The value of the UK private equity buyout market dropped to its lowest level for more than 13 years during the final quarter of 2008, according to recently published research.

The UK buyout market has dropped to valuation levels last seen in 1995, at just £994 million in the fourth quarter of 2008, according to research from the Centre for Management Buyout Research (CMBOR).This is a sharp decline since Q3 2008, when the UK buyout market was valued at £5.6 billion.

The report records a decline of £4.7 billion year on year, since a market valuation of £5.7 billion in the fourth quarter of 2007.

The research also reveals that the total value of deals for 2008 has fallen by 58 percent, standing at £19.1 billion from 549 deals, as compared to a recorded value in 2007 of £45.9 billion from 671 deals.

“Last year started off in good shape with the strongest quarter on record. Subsequent quarters however all witnessed marked falls in buyout activity as the market squeeze has tightened,” Christiian Marriot, director at Barclays Private Equity, said in a statement.