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Smaller private equity deals more likely to fail

Unrealistic pricing expectations leaves companies at the lower end of the market struggling to find buyers

Many smaller deals are failing to complete
Many smaller deals are failing to complete Photo: iStock

Nearly 40% of all private equity-backed sales processes up to £250 million have failed to complete in the past two years, according to a new analysis.

The research, from Investec, comes despite a couple of strong years for exits in the private equity asset class. Private equity deal values in Europe and the UK hit a nine-year high in 2015, according to Investec, with exits boosting the figures.

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