Aestival reflexions

Southern Europe continues to see activity. However, levels are a far cry from the heady days of yesteryear. That said, prices are still readjusting - one just has to look at the failed Cavalli deal to be reminded of the changing paradigm in which the industry operates. In fact, large buyouts have been conspicuous by their absence this year, with only a handful of deals taking place in Italy and Spain worth more than EUR200m and none close to the EUR1bn benchmark. With the effects of the sub prime crisis still reverberating and banks continuing to announce drops in results, buyout houses have become more cautious about entering long and expensive due diligence processes. The question that hovers over our heads is whether the glints of light we are seeing announce the end of the tunnel or if indeed it is another train approaching - head on!