A disparate, but powerful, combination of forces is transforming the buy-out sector in Europe. One force is the low stock market valuations for firms in some 'old economy' sectors, spurring some companies to re-evaluate their public listings.

Other public companies are seeking to reduce the number of non-core businesses they hold and are selling off subsidiaries to private buyers and management. Another feature is the institutional 'wall of money' raised in the last few years, giving private equity firms considerably enhanced buying power.