Figures announced today by CMBOR, the pre-eminent provider of analysis on the European and UK buy-out markets founded by Barclays Private Equity and Deloitte, has shown that the European buy-out market had a record first half total value of €91.8 billion; this is a 15 per cent  increase on the first half of 2006.

Commenting, Mark Pacitti, Corporate Finance Partner at Deloitte, said: “The UK is still the largest market at €35 billion, followed by France at €15.8 billion and Germany at €14.4 billion. Secondary buy-outs were the most valuable source in Continental Europe (€20.2 billion) and public-to-privates the most valuable in the UK (€20.7 billion).”

Pacitti added: “Although first half numbers are really strong, we are unlikely to see the trend continue in the second half. The current turmoil in the debt markets is having a major impact on big ticket deals across Europe, although mid-market (less than €500 million Euros) seems likely to be more resilient. Whilst Q3 completions are expected to be down dramatically, it remains to be seen whether activity picks up in the fourth quarter.”

Tom Lamb, Co-Head of Barclays Private Equity, commented:”Continental Europe continues to be where most of the big deals are completed: just 2 of the 15 largest deals in the first half of 2007 were in the UK.  But the UK still leads the way on public-to-privates, with 7 of the top 10 such deals in the same period.”

Lamb added: “On the exit side, secondary buyouts have continued to dominate, accounting for half of the exits by number and 8 of the top 10 exits by value. It remains to be seen whether the changes in the credit market over summer limit this type of exit option for private equity managers.”

Other key findings include:

• Deal sizes continues to increase across Europe – The number of deals above €500 million increased from 26 (3 per cent of the total) in the first half of 2006 to 44 (7 per cent of the total) for the same period this year. The average deal size across Europe is now a record €141 million.
• Deal pricing is increasing – In the first half of 2007, the price earnings ratio was between 10 and 11 times for deals below €100 million and between 16 and 24 times for deals over €100 million.
• Record debt levels in European buy-outs – The amount of debt in buy-out financing has increased to 55.8 per cent in the first half of 2007 compared to around 50 per cent for the previous five years.

For further information on supporting tables, download our press release European buy-out market peaks in first half. (PDF, 225KB)

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 independent analysis of the buy-out and private equity market.

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.  Deloitte & Touche 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 acts or 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.