Contact: Martina Červinková
Deloitte Czech Republic
Clients & Markets
+420 246 042 449
Contact: Garret Byrne
Deloitte Central Europe
Mergers & Acquisitions Transaction Services Leader
+420 246 042 339
PRAGUE, 24 July 2006 — According to Deloitte’s most recent Central European Private Equity Confidence Survey there is an increased interest for investments from private equity funds focused on Central Europe and it is only expected to keep growing. The latest edition of the survey, which focuses on the expectations of private equity professionals, also reveals that funds focused on Central Europe are now larger, more sophisticated and using debt much more than they were two years ago.
“Sales to strategic investors are still seen as the most popular exit strategy but secondary buyouts are more and more common while IPO’s are becoming a popular exit strategy.”
— Garret Byrne,
M&A Transaction Services Leader, Deloitte Central Europe
Outpacing the West
Highlighted is the renewed optimism in Central Europe which is amplified by strong economic performance and increasing investment profitability and stronger economic performance versus Western Europe. Central European countries are still expected to outperform the old EU member states. The report also emphasizes that market leaders in the region can expect to attract strong interest from private equity firms, tying in with an increased focus on buyouts and increased interest from funds outside the region.
Increase in market activity
While a strong focus on new investments continues, there is expectation of higher entry multiples and strengthening of IPO’s and secondary buyouts as exit strategies. “Sales to strategic investors are still seen as the most popular exit strategy but secondary buyouts are more and more common while IPO’s are becoming a popular exit strategy, particularly in Poland,” said Garret Byrne, Partner who leads Deloitte’s M&A Transaction Service Group in Central Europe.
Respondents also expect overall market activity and transaction size to increase. “We expect increased use of leverage and more buyouts versus development capital deals,” said Byrne.
Watch the trends
As global trends are mirrored in Central Europe, we can expect an increase in the size of funds. “Deloitte’s Fund Placement Advisory team has identified a great deal of interest for Central European funds amongst investors. This can be attributed to the increase in exits from investors’ existing funds, increased interest in private equity from attractive returns and investors looking at new geographies to diversify their portfolios,” said Byrne.
Learn more on or download the latest Central European Private Equity Confidence Survey.
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In the Czech Republic, the services are provided by Deloitte Czech Republic B.V. in respect of Deloitte Czech Republic B.V., organizační složka, by Deloitte s.r.o. and by Deloitte BPO G&I a.s. (jointly referred to as “Deloitte Czech Republic”), which are affiliates of Deloitte Central Europe Holdings Limited. Deloitte Czech Republic is one of the leading professional services organizations in the country providing services in four professional areas — audit, tax, consulting, and financial advisory services — through over 625 national and expatriate professionals.
