DC Advisory's European Private Equity Mid-Market Monitor: Q1 2023
Date
11 min read
DC Advisory presents our latest mid-market European activity update for the year so far.
A momentum shift for European Private Equity
In our recent Global M&A Outlook 2023, we noted a mood and momentum shift among private equity firms as they begin to contemplate new opportunities.
Our view is that over the coming quarter, GPs that opt to start sales processes will be those which either have a strong need to exit an asset in light of fund dynamics, or those that own assets which are well poised to generate strong buyer interest despite the headwinds. Sponsors are unlikely to risk being tainted by failed auctions for underperforming businesses, opting instead to hold off launching some sale processes until September or even January 2024.
Download the full report here
Read the regional commentary below
GP Secondaries
"Sponsors not only need to be more proactive and creative in how they identify and win new deals, but also in how they manage portfolio assets, ensuring that all levers for valuation maximisation are constantly optimised"
Benelux
"Increased financial stability will reignite deal flow across sectors, opening up financing markets, while the valuation gap between sellers and bidders will narrow"
CEE
"The CEE region has shown impressive economic growth and businesses are performing reasonably well, so M&A is diminished but by no means extinguished"
DACH
"Despite the heavy slowdown in market activity, Industrials outperformed compared to other sectors in Q1"
France
"The Healthcare sector remains resilient and continues to grow, along with social, fibre and technology infrastructure"
Italy
"Buyers are now focusing on acquiring new competencies and exploring ESG-related topics that provide a sustainable competitive advantage in the long-term"
Spain
"One of the sectors that offers investment opportunities is Spain's renewable energy sector. The Spanish government has set a target of achieving 74% renewable electricity by 2030"
UK
"We see sponsors opting to avoid megadeals in favour of smaller deals and bolt-on acquisitions where debt solutions may be more attainable"
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Authors
Netherlands
Netherlands
Poland
Germany
Italy
Italy
Spain
United Kingdom
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