Global private equity activity booms to post-crisis high

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increase-6_sqMore than 100 extra private equity buyouts took place in the first half of 2014 compared to the same period last year, new research shows.

The increased deal activity boosted total deal value to a post-crisis high according to Mergermarket’s latest Global M&A Report.

It said the $182.9bn involved in deals was up nine per cent compared to the first six months of 203, and was also the highest half-year value since the boom year of 2007.

The average amount paid for a buyout deal so far this year is $370m according to the report, down 2.7 per cent on the same period last year.

Growth in Asia-Pacific’s buyout activity continued thanks as the spending spree by companies like Temasek.

The US accounted for 43.8 per cent of buyout values in the first half of 2014, dropping from 53.5 per cent in the same period last year.

Despite four quarterly increases by value, European buyouts dropped 2.9 per cent in H1 2014 from the same time last year.

The value of global exits climbed to $260bn in the first half of 2014, an all-time high, exceeding the previous record of $240.5bn set in H1 2007.

The value of H1 2014 exits increased 131 per cent compared to H1 2013 (US$ 112.5bn), in part due to the average value of exiting a company hitting a post-crisis high at $566m.

The full report is available here.

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