• Healthcare sector CE survey
• Construction sector CE survey
• Consumer goods and retail sector CE survey

In line with the global sentiment in the private equity industry, the confidence of private equity professionals in Central Europe has fallen recently, something that is reflected in our survey results. While private equity practitioners may be less confident in the short term, we at Deloitte expect strong medium-term growth in activity in Central Europe driven by the substantial number of new global name entrants to the Central European market and the increase in people now chasing private equity deals in the region.

Further, we continue to see high growth prospects for private equity in the region given that Central European economies are hitting on all cylinders, for example posting the highest GDP growth rates in the past decade in 2007 (i.e. Czech Republic 6.5% and Slovakia 10.4% annual GDP growth rates in constant prices). This is confirmed by the findings of Deloitte's latest Central European Private Equity Confidence Survey.

Key findings

• Confidence in private equity hit a low in line with global short term sentiment in the private equity world
• Expectations of debt availability declined
• Entry multiples are expected to decrease due to market conditions
• Sales to strategic buyers continue to be the main exit option, but partial refinancing gains footing
• Add-on investments are currently seen as the best way to improve portfolio efficiencies

About the survey

Deloitte's Central European Private Equity Confidence Survey reflects the expectations of private equity professionals focusing on Central Europe. The survey has been conducted twice a year since March 2003 and the results are based on questionnaires sent to professionals in private equity firms covering the following Central European countries: Estonia, Lithuania, Latvia, Poland, Czech Republic, Slovakia, Hungary, Romania, Moldova, Bulgaria, Macedonia, Slovenia, Croatia, Bosnia & Herzegovina, Serbia, Montenegro, and Albania.

• January 2008
• July 2007
• January 2007
• 2006
• 2005
• 2003–2004

In addition to evaluating private equity confidence, we have recently taken a look at the fundamentals of three selected sectors in the Central Europe market. Enclosed are copies of these studies on each of the healthcare, construction and consumer & retail markets.