This site uses cookies to provide you with a more responsive and personalised service. By using this site you agree to our use of cookies. Please read our privacy policy for more information on the cookies we use and how to delete or block them.

No dampening in appetite to transact, especially for Private Equity

01 November 2018

The M&A market remains on course for another year of strong deal making with a further 619 transactions completed in Q3, according to the latest analysis from accountancy and business advisory firm BDO LLP.

The M&A market remains on course for another year of strong deal making with a further 619 transactions completed in Q3, according to the latest analysis from accountancy and business advisory firm BDO LLP.

BDO’s PCPI / PEPI* quarterly report shows that the PE market is particularly healthy, with 305 PE deals recorded so far in 2018. Full year volumes of PE deals are expected to be well ahead of 2017, which saw 334 deals complete. In spite of the economic and political uncertainties arising from Brexit negotiations, the M&A market remains settled and strongly committed to completing transactions.

Alongside climbing volumes, the third quarter of 2018 saw valuations holding firm, with double-digit EV/EBITDA multiples continuing in Q3 2018.  These indices, which track the multiples paid by trade and private equity buyers for private companies, underline the health of the current M&A market. In the third quarter of 2018 the PCPI returned the levels seen over recent quarters (10.0x). The Private Equity Price Index (PEPI), which tracks the multiples paid by private equity buyers, has seen average valuations fluctuating a little more, but continued to reflect the long-term trajectory of attractive valuations in Q3 (12.0).

Roger Buckley, M&A Partner at BDO, commented:

“No-one knows for certain if we have hit the top of the market, but we see no slowing in the market with a robust profile of ongoing M&A activity and significant levels of corporate and PE capital seeking the right transaction.”

 

ENDS

*Private Company Pricing Index / Private Equity Pricing Index

 

Note to editors

Accountancy and business advisory firm BDO LLP provides integrated advice and solutions to help businesses navigate a changing world.

Our clients are Britain’s economic engine – ambitious, entrepreneurially-spirited and high growth businesses that fuel the economy.  

We share our clients’ ambitions and their entrepreneurial mind-set. We have the right combination of global reach, integrity and expertise to help them succeed. 

BDO LLP

BDO LLP operates in 16 offices across the UK, employing over 3,500 people offering tax, audit and assurance, and a range of advisory services. BDO LLP has underlying revenues of £464m and is the UK member firm of the BDO International network.

BDO’s global network

The BDO global network provides business advisory services in 162 countries, with 74,000 people working out of 1,500 offices worldwide. It has revenues of $8.1bn. 


Contacts

Name: Roger Buckley
Position: M&A Partner
Company: BDO LLP
Phone: 0121 352 6213
Email: roger.buckley@bdo.co.uk


Press office:

020 7893 3000
media@bdo.co.uk