Buyers' market for venture capitalists
An expected economic slowdown is set give venture capitalists greater buying opportunities, according to a new survey.
Lower vendor price expectations will lead to more realistic pricing, according to Deloitte & Touche’s latest private equity confidence survey.
The survey showed that while 60% of venture capitalists expected the economy to remain the same, 27% expected it to deteriorate over the next six months.
This decline will force down the prices being asked by companies selling off subsidiaries.
Deloittes partner Quintin Barry said: ‘The evidence suggests there are opportunities for VCs in what may become a buyers’ market. A gloomier outlook for the economy may actually brighten the outlook for the volume of transactions over the next six months, providing opportunities to invest their very substantial funds.’
Barry added that the private equity market remained well funded with tens of billions of euros available for investment.
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