UK M&A deals in the first half of 2005 with private equity involvement registered at 21%, which is considerably down on the same period last year, which registered at 35%. Although UK head of M&A at Ernst & Young, said: “Private equity has remained a significant influence in the mid market, accounting for €5.3bn in completed transactions.”
Total value of UK mid market M&A in the first half of 2005 was €25bn, compared to €16.5bn in the first half of 2004. The UK mid market is defined as those completed transactions valued at between €50m and €500m involving UK targets. The underlying data was generated by Thomson Financial. Deal numbers increased from 111 in the first half of last year to 134 in the first half of this year. Average deal values in the UK mid market rose from €149m in the first half of 2004 to €187m in the first half of 2005. Franklin said: “If this rate continues, 2005 will see the best year for M&A activity in the mid market since 2000, when total value of completed deals reached €51.65bn.