Private Company Price Index (PCPI)
29 April 2021
PCPI Q1 2021: Huge spike in Q1 M&A deal volumes, with a surge in private equity confidence
A spike in M&A deal volumes was witnessed in Q1 2021, with 776 completed transactions marking the highest level seen for 13 years as private equity confidence soared. While Q4 2016 came close with 771 deals, the last time these levels were exceeded was in Q2 2008.
The rise in volumes - which represents an 8.2% increase on Q4 2020 activity levels - reflects a market continuing to catch-up on deals following last year’s lockdown hiatus, and an acceleration to complete transactions before the rumoured capital gains tax (CGT) rise.
Trade deals were up 3.4% to 612 deals, the highest since Q4 2018. But it was private equity which demonstrated the most significant surge in confidence, with volumes up 31.2% on Q4, to complete 164 deals.
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PCPI blog: M&A activity in Manufacturing is at record levels…why?
The M&A market in manufacturing is buoyant. The latest transaction figures point towards a record quarters not seen since before the financial crash in 2008. Why is this happening? M&A Partner, Roger Buckley, discusses recent deals from the first quarter which demonstrate the desire in the market to get business done, emerging trends in manufacturing M&A and investment appetite.
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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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