Private Equity Confidence Survey in Central EuropeJune 2006 |
There is an increased interest for investments from private equity funds focused on Central Europe and it is only expected to keep growing. These funds are also larger, more sophisticated and using debt much more than they were two years ago, according to Deloitte’s most recent Central European Private Equity Confidence Survey .
Key findings
Significant exits 2006
- Renewed optimism regarding economic performance
After cooling in September 2005, expectations regarding economic activity improved. Central European countries are still expected to outperform the old EU member states.
- Strong focus on new investments continues
With a growing appetite for Central European investments, respondents also expect overall market activity and transaction size to increase. This leads to a distinct move towards buyouts and increased availability of leverage
- Expectation of higher entry multiples
The positive development of the economy in Central Europe and increased competition suggests an increase in entry multiples.
- 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. With maturing stock markets in the region, IPO’s are becoming a popular exit strategy as well.
| Company | Seller | Buyer | Date | Value | Stake |
|---|---|---|---|---|---|
| SmVAK | Penta | FCC | April | EUR 248m | 99% |
| Terapia SA | Advent International | Ranbaxy Laboratories | March | EUR 270m | 97% |
| Zentiva | Warburg Pincus | Sanofi Aventis | March | EUR 430m | 20% |
| Lang Publishing and Hilding Capital | Royalton Capital Investors | WSOY | March | n/a | 45% |
| AMG.net SA | Innova Capital | Bull SA | February | n/a | n/a |
| Infopress SA | Baring Private Equity Partners | Oddi Printing Limited | January | n/a | 80% |
| Tallina Kulmhoone A/S | Amber Trust SCA | Nordic Foods AB | January | n/a | n/a |
About the survey
Deloitte’s Central European Private Equity Confidence Survey reflects the expectations of private equity professionals focusing on Central Europe. The survey is conducted twice a year 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.
Private Equity Confidence Survey in Central Europe
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