Contact: Sorrelle Cooper
Deloitte
Public Relations
020 7303 4820

The private equity market in 2006 is not shaping up to 2005’s impressive results, according to data released today by CMBOR, the pre-eminent provider of analysis on the European private equity market founded by Barclays Private Equity and Deloitte.

Tom Lamb, co-head of Barclays Private Equity, commented: “The year-on-year decline can be attributed to two main factors – there has been a significant decline in both public-to-privates and healthcare buyouts. The P2P market has collapsed from £7bn for the whole of 2005 to only £2bn for the year-to-date. Private Equity bids are either being rejected out of hand (eg ITV, HMV) or being trumped and/or even pre-empted by aggressive trade buyers, mainly overseas (eg 02, BAA). Overseas trade buyers now account for 66% of UK M&A activity, compared with only 21% in 2003.

Paul Zimmerman, Corporate Finance Partner at Deloitte, commented: “We have seen a drop of over 12% so far this year compared with this time last year with figures falling from £19.3 billion to £16.9 billion. Whilst the mid-market and lower end of the market have continued on an even keel over the year, we have seen a drop in the number of deals over £500 million with only 6 completed so far this year compared with 11 this time last year. We are expecting a strong return to form, however, as a number of large deals have been signed in recent weeks and, once completed, should bounce the numbers in time for Christmas.”

Industry sector highlights:

• The retail and leisure sector values have remained stable in terms of the year to date run-rate, despite concerns over consumer spending and increased competition on the high street, although there is evidence of a slowdown in the number of leisure sector deals.
• Technology, media and telecommunications continues its recovery, reaching £1.9bn so far this year compared with £1.5bn for the whole of last year.

Ends

Notes to Editors:
The Centre for Management Buy-out Research (CMBOR) was founded by Barclays Private Equity and Deloitte at Nottingham University Business School in 1986. CMBOR is world-renowned as the long-standing leader in providing robust analysis of the buy-out market.

Tom Lamb, Barclays Private Equity 020 7773 2541 / 07770 613 447

Paul Zimmerman, Deloitte 020 7303 5564 / 07831 578 544

Download the PDF to view the press release with supporting tables

About Deloitte

In this press release references to Deloitte are references to Deloitte & Touche LLP which is among the country’s leading professional services firms, providing audit, tax, consulting and corporate finance services. Known as an employer of choice for innovative human resources programmes, it is dedicated to helping its clients and people excel. Deloitte & Touche LLP is the United Kingdom member firm of Deloitte Touche Tohmatsu (‘DTT’), a Swiss Verein whose member firms are separate and independent legal entities. Neither DTT nor any of its member firms has any liability for each other’s omissions. Services are provided by member firms or their subsidiaries and not by DTT. Deloitte & Touche LLP is authorised and regulated by the Financial Services Authority. The information contained in this press release is correct at the time of going to press.

Deloitte & Touche LLP is authorised and regulated by the Financial Services Authority.

The information contained in this press release is correct at the time of going to press.