MBO survey finds market has stalled
The total value of management buy-outs has plummeted, according to a survey released today by the Centre for Management Buy Out Research.
The survey, sponsored by Deloitte & Touche and Barclays Private Equity, showed that Pounds 4.5bn worth of buy-outs were completed in the third quarter of 2001, half the value of that achieved for the same period last year.
According to Paul Zimmerman, Deloitte’s advisory services partner, the larger deals have stalled.
He said: ‘While it’s too early to predict the medium and longer term consequences for the market of the US terrorist attacks, in the short term some larger, international deals may be put on hold.’
But Zimmerman said the mid-market – deals valued at between Pounds 10m and Pounds 100m – would be affected less.
‘The buy-out dip last quarter may become more pronounced but is unlikely to go into free-fall,’ he said.
He said investors were still looking at opportunities with old economy characteristics such as cash flow and assets including healthcare, support services and property.
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Firms advise on two Pounds 50m MBOs