Private Company Price Index (PCPI)
27 October 2020
PCPI Q3 2020: Q3 sees M&A transaction volumes rebound and deal values maintained
After record low M&A deal volumes in Q2, the market saw a strong recovery in Q3. Transaction volumes rebounded by 63% with 408 transactions completing in Q3, up from 250 in Q2. Trade volumes rose from 214 in Q2 to 338 in Q3, while PE volumes nearly doubled to 70, from 36 in Q2. While levels are still around a quarter below the volumes seen before the pandemic hit, it is a very encouraging Q3 recovery.
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PCPI blog: Why now is a good time to invest in the outsourced pharma services sector.
Investors have historically considered the life sciences sector attractive in times of rapid change or crisis because of its resilience to upheaval. The COVID-19 pandemic has further focused the spotlight on the life sciences companies working on responses to the crisis. One subsector of life sciences that was already attracting significant investor appetite before the global outbreak was outsourced pharma services.
Find out more about the three trends driving value in the outsourced pharma services sector and why you should invest now.
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Each quarter we collect data surrounding Enterprise Value (EV) to Earnings Before Interest Tax Depreciation and Amortisation (EBITDA) multiples. The Index tracks the EV to EBITDA multiples paid by trade and private equity buyers when purchasing UK private companies.
We examine this market data and compare it with historic data to identify key trends. We draw on our long experience of running the PCPI and our sector-specific expertise to predict future market trends.
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