Private Company Price Index (PCPI)
04 August 2021
PCPI Q2 2021: Back to normal? Q2 M&A deal volumes suggest so
In Q2, Mergers & Acquisitions (M&A) volumes returned to more normal levels, with 507 trade deals and 85 private equity deals completing.
Following the disruption in 2020, Q2 deal volumes were back on a par with the pre-lockdown period of Q1 2020. This confirms there had been an acceleration of deal completions in Q1 to insure against potential capital gains tax rises in the Budget and pent-up demand from summer 2020 had been largely satisfied in Q4 2020 and Q1 2021. Trade deal volumes declined by 17% and PE volumes almost halved against the exceptional Q1.
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PCPI blog: Changing consumer trends and what they mean for M&A activity?
Over the last 18 months, the global pandemic has been driving exponential growth for some consumer brands. Captive audiences, with consumers having more time to shop online, or the market shift to direct from brand acquisition, mean that some brands have grown as much in just the last 18 months as was predicted over the next three years. So, has this growth led to an increase in M&A activity? M&A Partner, Laura McNaughton, discusses changing consumer trends and what is next for consumer M&A.
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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. Visit our M&A Services page for more information.
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