GERMANY - Please fasten your seat belts

Current conditions mean that many auctions are being pulled, and even those deals that are being closed see significantly more equity making up for the lack of debt. Indeed, for the first time private equity is, on average, contributing more cash to buyouts than senior lenders. From January to September 2008, 43.9% of the total came from private equity, compared to 41.6% from first-lien lenders. This marks a stark departure from the 33.6% equity contribution seen in 2007.

To add to the overall insecurity, the banking landscape is being completely transformed, as large players drop out and new firms emerge. In this climate, Gerd Bieding of Close Brothers states, reliability is more important than the exact pricing.

As the industry holds tight during the rollercoaster ride, some are more white-knuckled than others. "This is a wonderful time to have cash available", says Nick Money Kyrle of Steadfast Capital, before going on to stress that the market is shifting in favour of buyers, and while many firms are frozen, high-quality teams with significant experience and track records are expected to benefit from a market that has - harshly - come back to reality.

"The party is clearly over," concluded Dorbert. "But chances are, if you are still standing alone, you stand a good chance of winning in the end."

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