UK Watch Q1 2015: dealflow slows but confidence remains

While total deal value held strong in the first quarter of 2015, drilling down into each of the deal size segments shows a decline in total deal volume.

For larger buyouts (businesses with enterprise values of £150m or more), the total number of deals slipped to just nine in Q1 2015, compared with 14 in the final quarter of 2014. Furthermore, total deal value more than halved, falling from £6.1bn to £2.7bn. However, Q1 is a typically quieter period, and these figures are the best first quarter results since 2012 in terms of overall value and since 2010 in volume terms.

For smaller buyouts (companies with an enterprise value of less than £150m), activity in Q1 also witnessed a slowdown, with the total number of deals falling to 22 from the 36 recorded in Q4 2014. The aggregate value of these deals also dropped, from £1.5bn in the previous quarter to £958m.

In the early-stage and expansion capital deal segment, deal volume fell to a worrying 57, marking the lowest quarterly figure since 2005. Overall value skyrocketed to £1bn from £605m recorded in the final quarter of 2014, however, marking the second-best quarterly result since 2010. Furthermore, the total value of deals suggests that average deal value in this segment is increasing.

Based on the survey results, key players in the UK private equity and venture capital markets are more positive about the larger buyout segment, with 65% expecting an increase in activity for this part of the market. But survey participants were less optimistic about the lower mid-market, with only 45% predicting activity to increase, compared with 55% in the previous quarter.

To read the full report, along with survey results, click here.

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• Topics
• UK / Ireland
• Buyouts
• Early-stage
• Expansion
• UK Watch
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• Corbett Keeling