Multiple
Mid-sized deals at
the fore of European
buyout market
The exit market in Europe performed very
strongly in 2014. Total exit value was the highest
since 2007. Private equity-backed initial public
offerings remained a popular exit route.
With the level of mid-size deal activity the highest
since 2008, and corporates rejoining the market,
the outlook for 2015 is bright.
Private Equity
Transaction Advisory Services
Issue 1
2015
Welcome
About Multiple
Multiple is a publication summarizing trends in buyouts*
across Europe.
The following analysis and commentary is based on research
recorded by Center for Management Buyout Research (CMBOR)
in January 2015.
Countries covered: Austria, Belgium, Denmark, Finland,
France, Germany, Ireland, Italy, Netherlands, Norway,
Portugal, Spain, Sweden, Switzerland and the UK.
":mqgmlk2;E:GJ\]Õf]kZmqgmlkYkgn]j-(g^k`Yj]k[`Yf_af_gof]jk`ah$
with management or private equity, or both, having a controlling stake upon
deal completion. Equity funding must primarily be from private equity funds
Yf\l`]Zgm_`l%gml[gehYfqemkl`Yn]alkgofÕfYf[af_kljm[lmj]$
e.g., management buyout (MBO) or management buy-in (MBI).
For full details on the CMBOR methodology, please refer to page 15.
Contents
4
Headlines in 2014
5
Outlook for 2015
6
Deal dynamics
7
Corporate divestments to PE
8
Sector insights
10
Trade sales
11
Exits watch
12
Country spotlight
16
Contacts
18
Further insights
“In 2014, private equity (PE)-backed IPOs were at their
highest level since 1998, as financial sponsors continued
to capitalize on strong valuations. The year also recorded
the highest trade sales in exit value terms since 2011 and
the highest ever value of refinancings. It is likely that we
will see less of PE-backed IPOs in 2015, but we can expect
to see more corporates both selling and buying assets.
While this can generate heightened competition on some
M&A deals, it also means an improved exit route for PE
funds, particularly for large assets entered into portfolio
before the global financial crisis.
“Whether the strong momentum will translate into a fully
recovered European PE cycle is yet to be seen, but the
signs are clearly encouraging.”
Sachin Date, Europe, Middle East, India and Africa (EMEIA)
Private Equity Leader, EY
The data in this report covers the
full calendar year 2014.
Multiple |
3
Headlines in 2014
“For Western Europe, 2014 was a very positive year for M&A. We can expect a rise
in strategic sales as companies look to reshape their portfolios, focus on their core
business and divest to invest. Spin-offs and carve-outs look set to be the key trend for
2015. This in turn should help generate greater primary buyout activity.”
Andrea Guerzoni, EMEIA Transaction Advisory Services Leader, EY
Deal activity at highest level
since 2008
Mid-market drives new buyouts
• Total deal value in 2014 was €67.3b,
buyouts has been holding up in 2014
(to €104.7m) compared with 2013. This
is due to the rise in the number of deals
in the €100m–€500m range, which is at
its highest since 2008. At €14.3b in
H2 2014, value in the €100m–€500m
segment was up sharply on the previous
six months (€10.8b). This follows the
pattern of 2013, when H2 was by far
the strongest half. At 63 deals, volume in
H2 2014 was also up on the previous
six months (48).
compared with €59.4b in 2013. At
643 deals, volume in 2014 is also up
on the 563 recorded in 2013. Both deal
value and volume reached levels not
seen since 2008 (when 776 deals were
recorded for a total value of €71.6b).
Improved macroeconomic conditions,
strong fundamentals and capital markets
brought PE executives to the deal table.
Record high for European
IPO exits
• The year saw PE-backed IPOs rise to the
`a_`]kld]n]d]n]j$oal`,+ÖglYlagfk
contributing €44.0b of value in 2014.
Boosted by the revival in the capital
markets, the value of European exits in
2014 has totaled €113b, almost twice the
value of new buyouts (€67.3b).
4
| Multiple April 2015
• The average size of new PE-backed
Nordic region provides top
three deals
• The UK accounted for deals totaling
€19.9b in 2014, followed by Germany’s
€12.6b and France’s €9.4b. The UK was
home to 226 of the year’s 643 deals
across Western Europe. The next biggest
contributor was France, with 87 deals.
The Nordic region led in terms of growth.
It provided the top three deals, with the
two largest deals originating in Norway.
The Netherlands recovered, with deal
volumes at the highest since 2008 and
value also improving (€4.2b in 2014
compared with €1.9b in 2013).
Technology, media and
telecommunications (TMT),
ÔfYf[aYdk]jna[]kYf\
health care make progress
• Afl]jekg^k][lgjk$LEL$ÕfYf[aYd
services and health care have had a
strong year in Europe, with increased deal
value compared with 2013. Value, not
volume, has been making headlines in
2014, with some of the largest buyouts of
l`]q]YjafLELYf\ÕfYf[aYdk]jna[]k&
LEL`Yklghh]\Ò)+&/ZYf\ÕfYf[aYd
services has seen value exceed €6.2b.
Both sectors recorded their highest value
since 2007. Meanwhile, total deal value
for health care was €7.7b — more than
twice that seen in 2013.
Outlook for 2015
“The industry now has an unprecedented amount of dry powder, but investors are
certainly choosy about selecting quality assets. That said, the capital is there to do
deals, and there’s going to be a lot more M&A activity. We’ve seen some large corporate
divestments announced.”
Bridget Walsh, Head of Private Equity for UK & Ireland and Greater China Business Services Leader, EY
Key trends in 2015 should ensure that the European PE deal market remains on target for sustained growth.
Strategic buyers circling
assets
IPOs still a viable exit route
• PE and VC sponsors will remain keen
to exit the investments they made
before the economic downturn in 2007.
Although many of these portfolio
companies listed in 2014, a proportion
j]eYafk$Yf\l`]k]oadd[gflafm]lgÕdl]j
through to the IPO market, albeit on a
smaller scale.
• Transformational acquisitions are high
on the corporate agenda. EY’s 2015
Global Corporate Development Study
j]kmdlkk`goYka_faÕ[Yflaf[j]Yk]afl`]
number of transaction executives who are
considering cross-border transformational
Y[imakalagfkafl`]f]pl)*egfl`kÈ,,
mh^jge*1afl`]dYkl)*egfl`k&
Availability of capital
Megadeal trend will continue
• Global buyout dry powder stood at
• A healthy pipeline suggests €1b-plus deals
are here to stay in 2015. Two new €1b-plus
European buyouts and two €1b-plus exits
(trade sales) have already been announced
in Q1 2015 (as of 20 March 2015,
according to Mergermarket).
Improved macroeconomic
outlook
• After a year of hesitant recovery in 2014,
the Eurozone moves into 2015 supported
by two important growth drivers:
substantially lower oil prices and
quantitative easing. Despite the improving
near-term outlook, management teams
need to be very mindful of emerging
markets and operational improvements.
Top-line growth isn’t going to be achieved
by simply looking at the domestic market.
US$467b as of December 2014, according
to the PE Growth Capital Council. This
demonstrates the amount of capital that
fund managers will be looking to put to
work in the asset class in the near future.
European buyouts — volume and value
Total value (€m)
2009
Total number
Total value (€m)
2012
Total number
9,304
H1
207
11,183
H2
228
2010
23,966
H1
279
35,000
H2
333
2011
30,373
H1
321
33,125
H2
308
26,096
H1
308
28,923
H2
292
2013
23,690
H1
280
35,678
H2
283
2014
27,860
H1
322
39,453
H2
321
Source: CMBOR; Equistone Partners Europe; EY — full calendar year 2014 only
Multiple |
5
Deal dynamics
Mid-sized deals driving the
buyout market
,)&*af*()+lg,*&1af*(),&9dl`gm_`
this is still below the heights seen in 2009,
o`]fd]n]dkg^]imalqmk]\Yn]jY_]\.,$
it remains well above the levels of 2007.
During this boom year, the average
hjghgjlagfg^]imalqoYkbmkl+,&.$Yf\
\]Zl[gehjak]\-0&.g^Ydd\]Ydkljm[lmj]k&
Af*(),$l`]d]n]dg^e]rrYfaf]ÕfYf[af_
used in €100m-plus deal structuring hit a
Õn]%q]Yjdgog^)&*&
Volume and value in the €100m–€250m
segment were up sharply in 2014, to the
highest level since 2008. The year’s 75
deals were up on the 59 seen in this range
in 2013 and 2012. At €12.0b, value in this
range was also up strongly on the previous
year (€9.3b). The €250m–€500m segment
also reached its highest value since 2008.
In the high-value bracket (€500m or
greater), the year saw 33 deals. This is up
on the 29 deals recorded in the previous
year, thanks to the increase in the number
of €1b-plus megadeals.
:ggeaf_j]ÔfYf[af_Y[lanalq
Debt ratio up, mezzanine
subdued
In 2014, the average proportion of debt
mk]\lgÕfYf[]=mjgh]Yf\]Ydkgn]jÒ)((e
oYk-,&/&L`akakmhgfl`]-+&(
recorded in 2013. The percentage of equity
used to fund deals has risen slightly, from
Last year saw the highest value of
j]ÕfYf[af_k]n]jj][gj\]\&NYdm]`Ykegj]
than doubled since 2012, to €52.6b. This
j]hj]k]flkYka_faÕ[Yflaf[j]Yk]gfl`]
period between 2008 and 2012, when the
strongest year recorded a value of €25.1b.
This rise is evidence that companies already
oal`afYhgjl^gdagYj]Õf\af_al]Yka]jlg
acquire debt. Following a strong 2013,
market conditions continued to improve in
*(),&Ghhgjlmfakla[j]ÕfYf[af_ko]j]Y
feature of the market in 2014, as borrowers
have looked to reprice transactions.
Second lien and crossborder loans
After six barren years, 2014 saw second
lien debt reappear, driving leverage on
certain deals up by a multiple of six or
seven. An example is Bureau Van Dijk’s
pre-placed second lien that took total
leverage to around seven times as part of its
buyout by EQT (source: Reuters). Crossborder loans were also on the rise.
European borrowers with US dollar revenue
streams and assets are seeking out what
`Yn]`aklgja[YddqZ]]fegj]Ö]paZd]Yf\
aggressive funding markets in the US,
where higher leverage, lower equity
contribution and fewer (or no) covenants
are all available. BC Partners’ acquisition of
Mergermarket was a perfect example of a
UK-based mid-market borrower accessing
l`]MKeYjc]lk&L`]\]YdoYkYdkgÕfYf[]\
l`jgm_`ÕjklYf\k][gf\da]fljYf[`]k
(source: Debtwire).
Deal size
2011
12
22
94
501
629
€1b plus
13
17
76
494
600
€500m–€1b
2014
2013
2012
€100m–€500m
9
21
88
445
563
Up to €100m
13
20
111
499
643
Total number of deals
Source: CMBOR; Equistone Partners Europe; EY — full calendar year 2014 only
6
| Multiple April 2015
Corporate
divestments to PE
Local divestments value doubled in 2014
lgÒ)1&/ZÈl`]`a_`]klÕ_mj]kaf[]
2007 — as corporates’ activity on the
sell-side picked up. At 123 deals, volume in
2014 was also higher than in 2013 (114).
The value and volume of foreign
divestments also rose in 2014.
Divestments were a deal source for 10 of
the 20 largest new European buyouts in
2014. However, it should be noted that 2 of
those 10 large divestments were partial
secondary buyouts, where PE owners sold
a large subsidiary of one of their portfolio
companies to another PE investor.
Divestment plans are increasing around
the world, as companies realize that
divestments are a key way to fund business
growth. Among the EY 2015 Global
Divestment Studyj]khgf\]flk$,-
recently divested or placed a business on a
watch list if it wasn’t reaching performance
criteria. This trend is set to continue, with
-,g^]p][mlan]k]ph][laf_Yfaf[j]Yk]af
the number of strategic sellers in the next
12 months. Companies also divest for
ghhgjlmfakla[j]Ykgfk&9degklYl`aj\ *1!
of executives say that their last divestment
oYkghhgjlmfakla[$Yf\,*]ph][lYf
increase in unsolicited buyer approaches.
>mjl`]jegj]$,/g^[gehYfa]kkYql`Yl
even if they weren’t looking to divest, they
would consider selling at a premium in the
jYf_]g^)(Ç*( Yf\Yl`aj\g^l`gk]
ogmd\_gZ]dgo)(!&
70
14,000
60
12,000
50
10,000
8,000
30
6,000
20
4,000
2,000
0
2007 2008 2009 2010 2011 2012 2013 2014
Value
Volume
0
35,000
250
30,000
200
25,000
150
20,000
100
15,000
€m
40
10
Private sales to PE also increased in Europe
in 2014 — recording the highest value and
volume since 2008. The improved primary
ZmqgmlY[lanalqeY\]mh^gjYjYl`]jÖYl
secondary buyout market in 2014. This
trend is likely to continue in 2015, as
companies in the Americas, Europe and
]n]f;`afYÕfYddqklYjllgY[[]hll`Yll`]aj
portfolios aren’t in line with the post-crisis
low-growth environment that is here to stay.
Local divestment — volume and value
€m
Volume
Foreign divestment — volume and value
Volume
The march of divestments
continues
10,000
50
0
5,000
2007 2008 2009 2010 2011 2012 2013 2014
Value
0
Volume
Source: CMBOR; Equistone Partners Europe; EY — full calendar year 2014 only
Multiple |
7
Sector insights
The TMT sector has had a strong year in Europe. In 2014, the
sector has seen a total buyout value of €13.7b — the highest since
the €21.9b recorded in 2007. This pickup is largely explained by
the sector accounting for 5 of the 15 largest buyouts completed
across Europe so far this year: Visma (€2.5b), Scout24 (€2.0b),
SkillSoft (€1.7b), Unit4 NV (€1.2b) and TeamViewer (€870m).
Manufacturing was the other standout sector by value, with a total
of €15.1b in 2014. Its 193 deals were up on the 159 recorded last
year. This is almost double the 100 deals contributed by the secondplace sector by volume: business and support services (BSS).
The ÔfYf[aYdk]jna[]k sector totaled €6.2b in 2014. The value of
\]YdÖgoafl`]k][lgjoYkl`]k][gf\`a_`]klafl`]dYkl)(q]Yjk$
behind the €7.9b seen in 2007. However, just three deals
Manufacturing
2014
2013
193
deals
159
deals
accounted for more than half of this total value: the sale of Nets
Holding (€2.3b) to a PE consortium, Banco Santander’s sale of
Altamira Asset Management to Apollo Global Management for
€660m, and the acquisition of Skrill by CVC Capital Partners and
Investcorp for €600m.
DYklq]YjkYoYka_faÕ[Yflaf[j]Yk]afl`]fmeZ]jYf\nYdm]g^
deals in the health care sector. Forty deals, contributing a total
value of €7.7b, were completed, including two €1b-plus secondary
buyouts in France. This compares with €3.4b from 29 deals in
2013. Exit numbers in the health care sector were also boosted by
the largest exit of the year.
Health care
40
€15.1b
2014
deals
€12.9b
2013
deals
TMT
29
€7.7b
€3.4b
Financial services
84
2014
deals
2013
deals
80
31
€13.7b
2014
deals
€7.1b
2013
deals
34
€6.2b
€2.5b
Source: CMBOR; Equistone Partners Europe; EY — full calendar year 2014 only
8
| Multiple April 2015
Sector insights (continued)
“Unlike during the dotcom bubble, today’s disruptive technology businesses are able
to create value rapidly and with real revenue and cash flow growth — not simply
eyeballs, content and site visits. That’s a key reason why current high levels of M&A
are sustainable.”
Jeff Liu, EY Global Technology Leader, Transaction Advisory Services
Largest new buyout deals completed in Western Europe, 2014
Company name
Country
Deal month
Buyer
Sector
Visma
Norway
8
Lindorff
Norway
10
Nets Holding
Denmark
Scout24 Holding
Cinven
TMT
2,524
Nordic Capital
BSS
2,300
7
Advent International, Bain Capital,
ATP Group
Financial services
2,278
Germany
3
Hellman & Friedman
TMT
2,000
SkillSoft
Ireland
5
Charterhouse Capital Partners
TMT
1,669
Ceva Sante Animale
France
6
Temasek, CDH Investment
Health care
1,602
Sebia
France
12
Montagu Private Equity, Astorg
Health care
1,400
GEA Heat Exchangers
Germany
11
Triton Partners
Manufacturing
1,300
Minimax
Germany
8
Intermediate Capital Group, Kirkbi Invest
Manufacturing
1,300
Mauser
Germany
8
Clayton, Dubilier & Rice
Manufacturing
1,200
Unit4 NV
Netherlands
3
Advent International
TMT
1,174
Pizza Express
UK
9
Hony Capital
Food and drink
1,143
Median Kliniken
Germany
Waterland Private Equity
Health care
1,000
ParexGroup
France
6
CVC Capital Partners
Manufacturing
880
TeamViewer
Germany
7
Permira
TMT
870
Bureau van Dijk Electronic Publishing
Netherlands
9
EQT Partners, GS Capital Partners
BSS
845
CABB GmbH
Germany
6
Permira
Manufacturing
800
Trader Media
UK
3
Apax Partners
TMT
741
Arvos/Alstom's Air Preheater & Gas Heater units
Germany
9
Triton Partners
Manufacturing
730
Altamira Asset Management
Spain
1
Apollo Global Management
Financial services
660
12
Value (€m)
Source: CMBOR; Equistone Partners Europe; EY — full calendar year 2014 only
Multiple |
9
Trade sales
“Companies are approaching all deals with increasing rigor and standardized deal
processes in the face of growing competition from PE players and greater focus on
corporate governance by boards and shareholders.”
Jon Clark, EY EMEIA Oil & Gas Leader, Transaction Advisory Services
Strategic buyers are out in force
If corporates were on the sidelines in
previous quarters, activity picked up at the
end of 2014, with trade sales values higher
than before (€18.6b in Q4 2014, compared
with €9.9b in Q3 2014). Eight of the 10
largest trade sales in 2014 were crossborder deals.
H2 2014
112 deals €28.5b
H1 2014
84 deals
€11.9b
H2 2013
Increased IPO and trade sales values made
up for the decrease in secondary buyout
values. While IPO exits dominated the
upper end of the value range, trade sales
offered an improved exit route in 2014.
Strategic buyers demonstrated particular
interest for the bigger assets, as the
average trade sale value in 2014 (€206m)
was the highest since 2011 and marked a
ka_faÕ[Yflaf[j]Yk][gehYj]\oal`*()+
(€113m). This is consistent with the
Õf\af_kg^l`]dYl]kl=QGlobal Corporate
Development Study, a survey of more
than 300 M&A directors and corporate
\]n]dghe]flg^Õ[]jk$km__]klaf_l`Yl$Y^l]j
years of uncertainty and contraction in the
deal market, companies are, once again,
actively seeking to grow through M&A.
82 deals
€11.3b
10 | Multiple April 2015
Corporate development teams are
preparing to spend more time on
acquisitions that will fundamentally change
their businesses. They expect the average
percentage of their time spent on such
transformational acquisitions to increase
afl`]f]pllogq]Yjk$lg*-^jge)/
[mjj]fldqYf\bmkl)*Õn]q]YjkY_g&L`]
klm\qYdkgk`gokYka_faÕ[Yflaf[j]Yk]af
the number of respondents that plan to
enter a new geographic market in the next
)*egfl`kÈ.($mh^jge,+afl`]dYkl
12 months — or acquire new technology —
-+$mh^jge,+afl`]dYkl)*egfl`k&
Exits watch
“In Europe, a combination of strengthening equity markets, the sustained low interest
rate environment and growing investor confidence contributed to a surge in capital
raised in 2014. With continued expectations of quantitative easing by the European
Central Bank and bond yields close to all-time lows, investors yearning for higher
returns shifted toward equities — IPOs in particular.”
Martin Steinbach, EY EMEIA IPO Leader
Largest exits completed in Western Europe, 2014
Company name
Entry
year
Country
2014 exit
month
Alliance Boots
2007
UK
12
Acromas Holdings/Saga & AA
2007
UK
ISS
2005
B & M Retail
2013
Vendor
Exit value
(€m)
Exit type
Kohlberg Kravis Roberts
7,717
Trade sale
6
CVC Capital Partners, Charterhouse
Capital Partners, Permira
4,363
Flotation
Denmark
3
EQT Partners, GS Capital Partners
3,970
Flotation
UK
6
Clayton Dubilier & Rice
3,375
Flotation
3,060
Trade sale
2,524
Secondary buyout
2,470
Flotation
Oak Hill Capital Partners
2,277
Trade sale
CVC Capital Partners
2,200
Trade sale
Kohlberg Kravis Roberts, Investindustrial
1,962
Trade sale
1,900
Flotation
1,669
Secondary buyout
Quadrangle Group, GS Capital Partners
1,653
Trade sale
Friedrich Grohe
2004
Germany
1
Visma
2010
Norway
8
Elior
2006
France
6
Firth Rixson
2007
UK
Flint Group/BASF Drucksysteme GmbH/Aster
2004
Germany
9
Avincis/Inaer Inversiones Aereas
2005
Spain
5
11
L]pYkHY[aÕ[?jgmh$;j]\alKmakk]
First Boston
HgCapital, Montagu Private Equity,
Kohlberg Kravis Roberts
Charterhouse Capital Partners, Intermediate
Capital Group, Chequers Capital
The Carlyle Group, Intermediate
Capital Group
Berkshire Partners, Bain Capital,
Advent International Corporation
Applus Servicios Tecnologicos
2007
Spain
5
SkillSoft plc (SSI Investments III)
2010
Ireland
5
Get AS
2007
Norway
10
Ceva Sante Animale
2007
France
6
NiXEN Partners
1,602
Secondary buyout
Pets at Home
2010
UK
3
Kohlberg Kravis Roberts
1,466
Flotation
Sebia
2010
France
12
Cinven
1,400
Secondary buyout
Avolon
2010
Ireland
12
1,400
Flotation
Monier Group
2009
Germany
7
1,350
Flotation
Diana Ingredients/Diana
2007
France
7
Ardian, Motion Equity Partners
1,300
Trade sale
Minimax
2006
Germany
8
IK Investment Partners
1,300
Secondary buyout
Com Hem
2011
Sweden
6
BC Partners
1,274
Flotation
Anima/Monte Paschi Asset Management
2009
Italy
4
Clessidra SGR
1,260
Flotation
SSP/Select Service Partners & Creative Host
Services
2006
UK
7
EQT Partners
1,258
Flotation
CVC Capital Partners, Oak Hill Capital
Partners, Cinven
Apollo Management, York Capital,
TowerBrook Capital Partners
Source: CMBOR; Equistone Partners Europe; EY — full calendar year 2014 only
Multiple | 11
Country spotlight
UK
2014: €19.9b from 226 buyouts
Largest deal: €1.1b
UK new buyout value totaled €19.9b in 2014, compared with €17.9b in 2013. More than 200 deals (226)
completed in the UK last year, up on the 193 deals in 2013. Over one-third of all European new buyouts (226 out
of 643) have taken place in the UK.
As for the exit activity, the total 2014 value is at a record €44.2b, following 2013’s €27.5b. At €19.9b, IPO value
was the highest since records began. Trade sale value last year was more than triple that of 2013 — €17.2b versus
last year’s €5.5b.
Germany
2014: €12.6b from 74 buyouts
Largest deal: €2.0b
Germany was the second-strongest market in terms of buyout value in 2014. Its 74 deals contributed €12.6b
g^nYdm]È)1g^l`]lglYdkmeg^=mjgh]Yf\]Ydk&L`akoYkkda_`ldqd]kkaflglYd\]YdnYdm]l`Yfl`]Ò)*&0Zk]]f
in 2013. However, 5 of the 13 European megadeals (€1b-plus) were completed in Germany — more than in any
other country.
L`akj]dYlan]dqÖYlnYdm]h]j^gjeYf[]af*(),oYk[gfÕje]\gfl`]]palka\]&Bmkl,/H=]palk[gfljaZml]\YnYdm]
g^Ò)/&+ZÈ)-g^l`]lglYdO]kl]jf=mjgh]YfeYjc]laf*(),&L`akj]hj]k]flkYdegkll`]kYe]]palnYdm]^gj
Germany as in 2013 (€17.2b).
12 | Multiple April 2015
Country spotlight (continued)
“In the context of a dynamic PE market, we are yet to see an increase in French primary
deals activity. PE-backed IPOs remain rare, with only one completed in France in 2014,
compared with over 20 in the UK.”
Laurent Majubert, Partner, Transaction Advisory Services, EY France
France
2014: €9.4b from 87 buyouts
Largest deal: €1.6b
Activity in France has been holding up, with 87 deals completing in 2014. This compares with 99 in 2013 and
102 in 2012. However, France was the second most active European market by volume after the UK (226),
and total value was on the rise compared with 2013 (€8.5b). Those 87 deals accounted for €9.4b, including
2 megadeals completed in the health care sector.
With 64 exits in 2014, the French exits market performed quite well. Again, France was the second most active
market after the UK (200). With only one completed IPO, the total exit value of €12.4b in 2014 improved
ka_faÕ[Yfldq[gehYj]\oal`*()+ Ò0&-Z!$Yf\oYk^YjYZgn]*()* Ò+&0Z!&
Norway
2014: €6.4b from 23 buyouts
Largest deal: €2.5b
The buyout market in Norway posted a record year in 2014. With 23 deals completed, volume was the highest
since 2006, and Norway surged to a new record total value of €6.4b. Value doubled for a second consecutive
year. The two largest European buyouts of the year were Norwegian deals completed in H2 2014, each with a
value over €2.3b.
FgjoYqYdkgkYoYka_faÕ[Yflaf[j]Yk]af]palnYdm]kaf*(),$l`YfcklgYkljgf_k][gf\`Yd^g^l`]q]Yj&
With 14 deals contributing €6.1b, 2014 value reached another record. Norway accounted for 2 of the top
15 exits in 2014.
Multiple | 13
Country spotlight (continued)
Netherlands
2014: €4.3b from 48 buyouts
Largest deal: €1.2b
With €4.3b of total value from 48 deals, the Dutch buyout market has reached a new high since 2008, when
52 deals contributed €6.4b. The largest deal was the €1.2b acquisition of Dutch software company Unit4 NV
Zq_dgZYdH=Õje9\n]flAfl]jfYlagfYd$[gehd]l]\afI)*(),&
=palngdme]\gmZd]\af@**(),lg),&=palk`Yn]jYak]\Ò,&/Zaf*(),&L`akakka_faÕ[Yfldq`a_`]jl`Yfaf*()+$
both in terms of value (€974m) and volume (14 exits), but still below 2012 levels.
Spain
2014: €3.1b from 34 buyouts
Largest deal: €660m
There was a strong uptick in the Spanish buyout market in 2014. The year saw 34 deals completed, compared with
only 21 in 2014, for a total value of €3.1b. This comfortably exceeded 2013 value (€2.1b). The largest transaction
was Banco Santander’s sale of Altamira Asset Management to Apollo Global Management for €660m.
KhYaf`YkYdkgk]]fYka_faÕ[Yflaf[j]Yk]af]palnYdm]kkg^Yjl`akq]Yj&Oal`)0\]Ydk[gfljaZmlaf_Ò1&.Z$*(),
value was at the highest since records began in 2005. Spain accounted for 2 of the top 15 exits in 2014, with the
trade sale of Avincis and the Applus IPO.
14 | Multiple April 2015
CMBOR methodology
The data only includes the buyout stage of the PE market
(MBO, MBI, institutional buyout (IBO) and buy-in
management buyout (BIMBO)), and does not include
any other stage, such as seed, start-up, development or
expansion capital.
Unless otherwise stated, the data includes all buyouts,
whether PE-backed or not, and there is no size limit to
deals recorded.
Afgj\]jlgZ]af[dm\]\YkYZmqgml$gn]j-(g^l`]akkm]\
share capital of the company has to change ownership,
with either management or a PE company, or both jointly,
having a controlling stake upon deal completion.
Buyouts and buy-ins must be either management-led
or led by a PE company using equity capital primarily
raised from one or more PE funds.
Transactions that are deemed not to adhere to the PE,
MBO or MBI model are not included.
Transactions that are funded from other types of funds,
such as real estate and infrastructure, are not included.
<]Ydkafo`a[`YH=ÕjeZmqkhjgh]jlqYkYfafn]kle]fl
are not included.
In order to be included, the target company (the buyout)
emkl`Yn]alkgofk]hYjYl]ÕfYf[af_kljm[lmj]Yf\emkl
not be held as a subsidiary of a parent holding company
after the buyout.
Firms that are purchased by companies owned by a PE
ÕjeYj]lj]Yl]\YkY[imakalagfkYf\Yj]fglaf[dm\]\af
the buyout statistics. However, these deals are recorded
in the “acquisitions by buyout companies” statistics.
All quoted values derive from the total transaction value
of the buyout (enterprise value) and include both equity
and debt.
The buyout location is the location of the headquarters of
the target company and it is not related to the location of
the PE company.
The quarterly data only counts information on transactions
that formally close in that quarter and does not include
announced deal information.
Multiple | 15
Contacts
Sachin Date
EMEIA Private Equity Leader
+ 44 20 7951 0435
sdate@uk.ey.com
Bridget Walsh
United Kingdom and Ireland
+ 44 20 7951 4176
bwalsh@uk.ey.com
Maurice van den Hoek
Netherlands
+ 31 88 40 70434
maurice.van.den.hoek@nl.ey.com
Marc Guns
Belgium
+ 32 2 774 9419
marc.guns@be.ey.com
Michael Kunz
Germany, Switzerland and Austria
+ 49 6196 996 26253
michael.kunz@de.ey.com
Laurent Majubert
France
+ 33 1 55 61 06 29
laurent.majubert@fr.ey.com
Juan López del Alcázar
Spain
+ 34 915 725 195
juan.lopezdelalcazar@es.ey.com
Umberto Nobile
Italy
+ 39 028 066 9744
umberto.nobile@it.ey.com
16 | Multiple April 2015
Marketing:
Pierre Vigouroux
Transaction Advisory Marketing
+ 33 1 55 61 01 33
pierre.vigouroux@fr.ey.com
Michel Eriksson
Nordics
+ 46 8 520 593 54
michel.eriksson@se.ey.com
Olivier Coekelbergs
Luxembourg
+ 352 42 124 8424
olivier.coekelbergs@lu.ey.com
Peter Wells
Central and Southeast Europe
+ 420 225 335 254
peter.wells@cz.ey.com
Leonid Saveliev
Commonwealth of Independent States
+ 7 495 705 9702
leonid.saveliev@ru.ey.com
Demet Ozdemir
Turkey
+ 90 212 368 5264
demet.ozdemir@tr.ey.com
For more information, please visit ey.com/multiple.
Multiple | 17
Further insights
2015 Global Corporate
Development Study
Oal`E9Õjedqj]%]klYZdak`]\YkYjgml]lg
_jgol`$l`]klm\qÕf\kka_faÕ[Yfl[`Yf_]k
in the role and responsibility of the corporate
\]n]dghe]flg^Õ[]j ;<G!&
For more information, visit
ey.com/cdo.
?dgZYd;YhalYd;gfÕ\]f[]:Yjge]l]j
April 2015
The ?dgZYd;YhalYd;gfÕ\]f[]:Yjge]l]j surveyed
a panel of more than 1,600 executives to identify
boardroom trends and practices in the way
companies manage their capital agendas.
For more information, visit
ey.com/ccb.
18 | Multiple April 2015
2015 Global Divestment Study
The 2015 Global Divestment Study highlights
how leading companies view divestments as a
fundamental part of their capital strategy.
For more information, visit
ey.com/divest.
Capital Insights
How can companies combine the best traditional
business methods with innovative approaches to
help shape their destinies?
For more information, visit
capitalinsights.info.
Multiple | 19
EY | Assurance | Tax | Transactions | Advisory
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