New research from KPMG suggests that the total value of UK MBOs will break the £30bn barrier for the first time this year.
KPMG’s Private Equity Group, which tracks private equity buy-outs over £10m, found that the value of deals for 2006 hit a record £29.3m.
The group suggests that the market is still buoyant and therefore it is believed that private equity deals will break records once again this year.
In the final quarter of 2006 there were 50 deals with a total value of £7.8bn, compared to the same time last year when there were 35 with a combined gross of £6.3bn.
Michael McDonagh, corporate finance partner at KPMG, said that there was a ‘rising volume’ in mid-market deals.
He said: “The final flurry of activity at the end of 2006 showed that smaller (£10m - £50m) deals were back on the agenda with a continued focus on the building and construction sector.
“The signs so far are of a busy start to the New Year in the buyout market.
“With plenty of financing available and private equity funds hungry to spend allocations on quality assets with stable cashflows, we see no sign that the frenzy in this market is about to end soon.”
© Crimson Business Ltd. 2007
