New York, July 23, 2009 – While private equity investors were responsible for only 15% fewer announced transactions during the first half of 2009 compared to the same period of last year, the aggregate value of those transactions plummeted by 80%, the likely cause being continued tightness in the credit markets. The data indicates that while PE buyers’ appetite for transactions remains healthy, limited access to leverage has significantly reduced the enterprise values of individual deals.
It should be noted however, that while enterprise value multiples appear to have declined dramatically in the 1st Half of 2009, this is largely attributable to sales of distressed properties taking an increased share of activity. Removing this class of transactions from the picture reveals considerably improved multiples, suggesting that sales of healthy companies continue to command healthy multiples.
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Berkery Noyes provides skilled transaction management to publicly traded and privately held businesses and private equity groups in both sell-side and buy-side mergers and acquisitions. We have managed transactions ranging from several million to more than four billion dollars in value, with an emphasis on mid market transactions of $10 million to $500 million in enterprise value.
Our clients include private companies seeking a buyer, most of the major international information companies, and private equity firms who use the firm’s expertise in locating, analyzing and negotiating with acquisition candidates and in managing divestitures. The firm operates with a staff of forty professionals serving the information industry.
For more information, visit www.berkerynoyes.com or call John Shea or James Berkery at (212) 668-2022.