UK - Prices fall to lowest level for six years

The story was similar for trade buyers, with the average entry multiple (PCPI) also dropping by 14% to 11.3x, meaning it remained above private equity for the second successive quarter. Both were again below the equivalent price to earnings ratio of FTSE companies, which declined by 3% to 12.4x.

In terms of sectors the report suggests that the most significant for private equity buyers over the past twelve months has been healthcare and eduction, where the PEPI was 17.8x earnings - well above the PCPI but below the FTSE p/e ratio of 22.9x. Indeed, the only sector where the private equity multiple was higher than the public market ratio was financial services, where the PEPI averaged 17.5x over the year, while the FTSE p/e ratio averaged just 11.3x.

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• Topics
• Performance
• UK / Ireland
• Healthcare