European Private Equity Outlook 2013
The mood is upbeat once again in the European private equity sector. After a more pessimistic mood among PE investors in 2012, more deals are expected this year – especially in Scandinavia and Germany. In contrast, Spain, Portugal, Italy, France and Greece are expected to continue to experience a slight decline. Pharmaceuticals, healthcare, consumer goods & retail and energy utilities are considered the key target industries.
However, really big transactions are expected to be the exception, partly because the economic situation remains uncertain, according to those surveyed; despite more liquidity, debt financing will be difficult and purchase price expectations are expected to remain unchanged. Two thirds of the 1,200 European executives surveyed are also of the opinion that the business model of PE companies need to be examined and adjusted to fit the market environment. These are the key findings of the new "European Private Equity Outlook 2013" study.
"The mood in the European private equity market is slowly but surely picking up," says Gerd Sievers, Partner in the Corporate Finance Competence Center of Roland Berger Strategy Consultants. "Since the overall economic prospects are expected to remain unchanged, this can be attributed to improvements in financial markets and the development of the euro crisis."