UK buyout results reveal switch in focus

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The map of buyouts in 2007 looks as it felt at the time. It began in Q1 with another successive quarter of strong buyout activity before reaching heady heights at the back-end of Q2.

By Q3, however, the wind had come out of the sails and although that quarter was propped up by the completions of a number of deals from Q2, by Q4 a picture of a dramatically shrunken buyout market had emerged.

While the scale of the correction might frighten some - with the UK's total value of buyouts dropping by a staggering EUR32bn - the fact remains that buyout players have not frozen. Deals are still being done, albeit mostly at the smaller end.

A period of slower activity in adjustment to the new conditions was to be expected and, while the Boots deal represents a symbolic peak if it, in all its EUR16.3bn glory, is removed from the equation, then Q4 looks a little less bleak.

Q4 recorded only 12 fewer deals than Q1 2007 and in European terms, the UK buyout market appeared to suffer in proportion with the rest of the European buyout market despite reservations that it would be more affected. (Page 20)