The value of private equity completions in Ireland in the first half of 2008 was €73.5 million, down 73% from €277 million in the first half of 2007, according to the latest figures from the Centre for Management Buy-out Research (CMBOR), the pre-eminent provider of analysis on the Irish & UK markets founded by Barclays Private Equity and Deloitte. 

The significant drop in activity during the first half of the year resulted in an average deal value of €14.7 million. This is the lowest deal value since 1997 when the average deal value for the full year was €8.6 million.

Key facts include:

• The Irish market has witnessed a decreased number of private equity completions in the first half of 2008, with 5 deals being completed in the first half of the year, compared to 8 in the first half of 2007.

• All deal values were below the €50 million mark – 4 deals were under €25 million mark, with just one exceeding it. In comparison, in 2007 two deals surpassed the €100 million mark.

• The 5 deals were spread across various sectors – there were two deals in the business and support services industry with the food and drink, healthcare, and technology, media and telecommunications sectors each seeing one deal take place.

Commenting on the figures, David O’ Flanagan, Head of Deloitte Corporate Finance, said, “In line with international trends, it is not surprising that there is a slowdown in the level and value of activity in the private equity market in 2008. The credit crunch continues to impact on activity – and potential acquirers will want to see how the economy plays out over the coming year before committing to a deal. Also, some vendors may still be unwilling to budge on price, while acquirers are holding out for a bargain.

“Valuations will continue to face downward pressure as financing remains difficult to obtain. However, as deal values in Ireland tend to be smaller than in more established markets, we believe that mid-market activity should pick up in the medium term – when the credit markets stabilise.”

Note to Editor:

Barclays Private Equity and Deloitte founded the Centre for Management Buy-out Research (CMBOR) at Nottingham University Business School in 1986. CMBOR is world-renowned as the long-standing leader in providing robust independent analysis of the buy-out and private equity market.