08 Mai 2012

Dramatic fall in Q1 2012 in European Buy & Build activity

Headline Findings

  1. The volume of Buy & Build activity in Europe in Q1 2012 fell by around a third from the level seen in Q3 and Q4 of 2011, and was the lowest of any quarter since mid-2009
  2. The average disclosed value of add-ons fell to £21 million down from an already very modest £34 million in Q4 2011 and £70 million in Q3 2011. The average disclosed value per add-on was the lowest of any quarter in the last four years
  3. The number of add-ons undertaken in Southern Europe has been in gradual decline over the past three years, with only 9% of all add-ons undertaken in Q1 2012 being based in Italy, Iberia or South Eastern Europe (which includes Greece)


Commenting on the findings, Neil MacDougall, Managing Partner of Silverfleet Capital said: “The downward trend in Buy & Build activity that we observed in the second half of 2011 was even more pronounced in Q1 2012.”

“The two LTRO operations by the European Central Bank took place on 22nd December 2011 and 29th February 2012. The beneficial impact on buyout activity of those two operations will become clearer later in the year but we think that they occurred too recently to have had any influence on the Q1 Buy & Build statistics. However, this data provides some small justification, if any more was needed, for the ECB’s actions.”

“We have also looked specifically at add-on deals undertaken in Southern Europe, given the issues facing Portugal, Spain, Italy and Greece. As would be expected, the volume of add-ons completed in these countries, when compared to add-on deals done by European private equity-backed companies as a whole, has fallen significantly.”

Click here to download the pdf

{"title":"Dramatic fall in Q1 2012 in European Buy & Build activity | Silverfleet","description":"","mode":"ss","targetId":"top"}