The number and value of UK buy-outs has continued to fall in January, but at a slower rate since the dramatic fall in the final quarter of 2001, new figures from Royal Bank Private Equity said.
In January 2002, the total value of UK buy-outs stood at €27bn ($24bn) from 133 deals. In January 2001 there were 158 with total value of €33bn. Tim Farazmand, director of Royal Bank Private Equity, said: "The market is coming back but the peaks of activity we saw in mid-2001 are some way off. The economic uncertainties of the fourth quarter of 2001 have largely dissipated and we have seen this reflected in greater accessibility to funding for buy-out opportunities through both the equity and debt markets." Average price/earnings ratios for deals over €10m have remained relatively stable over an 18-month period, at just under 10. In January 2002 the average price/earnings for deals of this size was 9.18.
