PRIVATE EQUITY | REALISE
PRIVATE EQUITY | REALISE
13
12
PRIVATE EQUITY FOR ALL-MARKET ENVIRONMENTS
PCPI V PRIVATE EQUITY Q1 2018 – Q4 2021
20
18.0
17.5
17.5
16.8
14.8
15
12.8
13.9
13.5
12.6
12.8
13.0
11.8
12.5
12.6
10.7
12.0
12.4
12.1
11.8
12.9
11.9
12.2
12.2x
12.3
12.2
10
12.0
12.0
11.6
11.8
11.5
11.8
10.3
11.4
11.6
10.6
10.6
10.2
10.1
10.4
10.2
10.6
10.3
10.1
10.4
10.0
9.6
9.8
5
9.5
0
Private Equity activity is influenced by global economic and geopolitical events. Q2 of 2020 saw deal stats down 53% year on year; however, PE houses flexed quickly and refocused on resilient sectors like tech, healthcare and life sciences. 2021 saw the strongest year for deals since 2008 with 2782 completions. It marks a very strong recovery from activity levels in 2020, a rebound of 42% which was reflected equally across trade and PE transactions. There is still a lot of PE money in the system; with new funds being created, we can only expect to see more deals.
BDO’s Private Company Price Index (PCPI), which tracks the volume of deals completed by quarter, demonstrates ongoing resilience in the M&A market. In addition, the Private Equity Price Index (PEPI), which represents the multiples paid by Private Equity buyers, remains strong reflecting the high levels of competition for quality businesses. The combination of Private Equity funding levels, low interest rates, the relative weakness of sterling, liquid debt markets and cash rich corporates means that the number of buyers exceeds the number of attractive acquisition opportunities. We help our clients attract higher multiples by cutting through the complexity and making their business stand out for the right buyers.
Q1
Q2
Q3
Q4
Q1
Q2
Q3
Q4
Q1
Q2
Q3
Q4
Q1
Q2
Q3
Q4
2018
2019
2020
2021
FTSE All-Share
Private Equity Price Index EV/EBITDA
Private Company Price Index EV/EBITDA
Q1 2018 TOQ4 2021 VOLUME OF DEALS COMPLETED
800 700 600 500 400 300 200 100 0
164
117
103 80
125
121
110
90
85
76
96 108
74
91
70
631
622 609
592 612
509 485 488
509
507
506
486 521
36
423
338
214
Q1
Q2
Q3
Q4
Q1
Q2
Q3
Q4
Q1
Q2
Q3
Q4
Q1
Q2
Q3
Q4
2018
2019
2020
2021
Trade
Private Equity
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