PE Tech Report

NEWSLETTER

Like this article?

Sign up to our free newsletter

UK deals resurgent as private equity trades up

The UK deals market is resurgent with Q1 deal volumes up 50 per cent on Q1 2014, according to PwC deals index. Total deal values increased by 96 per cent, driven by a number of 'mega deals' and the ongoing availability of capital. 

Stuart McKee, PwC head of corporate finance in the firm’s UK Deals business, says: “Although headline numbers across all deal sizes showed a decline in this quarter, the market for larger deals was significantly more positive driven by the improving macroeconomic environment, increased market confidence, favourable debt markets and a strong UK/US deals axis.” 

Though corporate activity was the main driver of growth in deal numbers – accounting for 70 per cent growth compared to growth of just 2 per cent in private equity led deal numbers – private equity has shifted its focus to much larger deals, with average deal sizes leaping from GBP97m to GBP235m for the first three months of 2015. Average corporate deal values remained much steadier at GBP153m up from GBP142m. 

Respondents to the survey which tracks global assets over GBP25m involving a UK asset or acquirer, believe that the rapid increase in UK M&A activity will start to tail off later in the year, but that the outlook for Q2 remains positive. Some 36 per cent of corporate respondents say they are likely to make an acquisition in Q2 2015, while 85 per cent of PE respondents say the same. 

John Dwyer, global head of PwC’s Deal business, says:  “Embedded in these statistics are a number of transformational deals led by Private Equity. Our latest research indicates that our survey panel expect deal activity to remain strong for the next six months before tailing off towards the end of 2015.” 

Like this article? Sign up to our free newsletter

MOST POPULAR

FURTHER READING

Featured