The Dutch downturn in numbers

Between 2004-2007 there were a small yet significant number of mega buyouts in the Netherlands, which reached a peak in 2006 (see chart 1). During this year, there were five deals valued above EUR1bn that represented 86% of the total deal value, which broke all records to top EUR25bn across 68 private equity-backed transactions.

Indeed, of the top 10 transactions carried out in the Dutch market over the period (see table), six were completed between 2006-2007; these deals alone being worth close to EUR26bn. However, despite the continued presence of such large deals, in 2007 deal value decreased year-on-year by 40% to EUR15.4bn while volume jumped to 84.

Like much of the rest of Europe, the Dutch buyout market did not fare so well in 2008. The largest acquisitions were those of Schuitema by CVC, estimated at EUR950m, and the EUR750m TMF acquisition led by Doughty Hanson, which took place in Q2 and Q3 respectively. Following the Lehman Brothers collapse, however, the market seized up and Q4 subsequently saw a complete drop off in buyout terms.

Overall, there were 31 buyouts completed over the course of the year for a combined value of around EUR3.43bn (see chart 2). This represents a drop in both volume and value from 2007, when there were 43 deals worth EUR14.23bn. Despite these slides, buyouts still represented close to 80% of the value in the Dutch market in 2008. Total value was therefore incredibly low over the year, standing at less than half of 2004's EUR8bn.

Venture and growth capital

At the expansion end of the spectrum, while volume has decreased from the crest experienced in 2001, during the last five years it has been fairly steady at around the 20 deal mark (see chart 3a). As for value, the figures saw a decrease in 2002-2003 following the burst of the dotcom bubble. Indeed, the totals remained turbulent for the next five years until 2007, when it reached an impressive EUR1.02bn (owing in no small part to the EUR760m Delta Hydrocarbon deal). Last year saw volume figures remain at 2007 levels but recorded a 23% decrease in value.

As for early-stage, its trajectory has been a bit irregular over the period, but in the last couple of years - despite recording a halving in terms of value - there has been stability in terms of volume. With buyout activity remaining sparse, this area may perhaps provide something of a silver lining.

Sector breakdown

While the largest transactions have tended to be in the media and telecoms sectors (see table), the busiest space, in terms of activity, has consistently been in business support services. This remained the case in 2008, when nine deals were completed in the category - down slightly from 12 in 2007.

While media came second in 2007 with 4 deals (which included the EUR2.6bn Endemol transaction), in 2008 it was surpassed by the food producers sector, which itself recorded four deals. In 2007, the sector had shared the third spot with the auto parts and construction & materials sectors.

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