Connect with us


Why private equity hasn't hit the London Stock Exchange yet this year

Why private equity hasn't hit the London Stock Exchange yet this year


Saturday May 18, 2024 6:00 a.m.

A wave of private equity bids was expected – but so far it has been corporates that have led the City's takeover spree.

As private equity firms bounced around London hearing advisors and lawyers late last year, top dealmakers looked forward to a return to action.

Buyout houses had been plunged into a period of calm as rising interest rates drove up the cost of financing transactions and inflation sent public market valuations tumbling.

But with London-listed companies remaining cheap and the prospect of a rate cut not far away, a bargain hunt on the London Stock Exchange seemed imminent.

With a few notable exceptions, notably Thoma Bravo's 4.3 billion offer for Dark trace and the 1.3 billion Blackstones are attacking Hipgnosis, but this frenzy has not yet materialized.

As we continue to see private equity firms scour the market for acquisition opportunities and engage in initial offering discussions, it has been difficult to meet expectations for advice value directors and shareholders of target companies, said Michael Nicholson, head of mergers and acquisitions at investment bank Peel Hunt. City AM.

As we continue to see private equity firms scour the market for acquisition opportunities and engage in discussions on initial offerings, it has been difficult to meet the value expectations of boards and CEOs. shareholders of target companies.

Michael Nicholson, head of mergers and acquisitions at investment bank Peel Hunt

Corporate buyers have instead gone wild, making more than 20 firm offers for UK-listed companies so far this year, accounting for around 80 per cent of the market by value and volume, according to Peel Hunt.

Some of London's biggest listed companies are now firmly in play after corporate takeover bids, with Anglo American, Virgin Money, Redrow and DS Smith all falling in the crosshairs of their rivals' bids.

Corporate appetite has supported a wave of takeover bids for larger companies. Nine companies worth more than a billion are now on offer, compared to just one at the same time last year.

Although private equity appetite is there, bankers Peel Hunt said businesses have not been held back by pricing fears.

Foreign and domestic companies have become significantly more active since the start of the year. This is because, among other things, they have taken advantage of the current window of opportunity to make deals before the election season kicks off on both sides of the Atlantic,” adds Nicholson.

Similar problems derailed a wave of deals in the private equity sector last year. Apollo's bids for Wood Group and THG, owner of City AM, for example, were repeatedly rejected by boards before the company finally gave up.

While “well-capitalized companies are back in the game,” says Laura Ackroyd, mergers and acquisitions associate at Herbert Smith Freehills, “private equity has so far remained subdued.

Private equity bidders are still very present in the market; but they are grappling with rising expectations for bonuses from boards and shareholders to offset market undervaluation, she says. City AM

Behind the scenes, one lawyer said the firms are very active and evaluating a number of potential targets, and they still have a mandate to deploy capital quickly.

But with ongoing efforts to revive the flow of cash into the public markets and growing hopes for a rebound in the UK economy, many boards and shareholders now appear willing to wait for higher prices rather than sell at a low price.




The mention sources can contact us to remove/changing this article

What Are The Main Benefits Of Comparing Car Insurance Quotes Online

LOS ANGELES, CA / ACCESSWIRE / June 24, 2020, / Compare-autoinsurance.Org has launched a new blog post that presents the main benefits of comparing multiple car insurance quotes. For more info and free online quotes, please visit https://compare-autoinsurance.Org/the-advantages-of-comparing-prices-with-car-insurance-quotes-online/ The modern society has numerous technological advantages. One important advantage is the speed at which information is sent and received. With the help of the internet, the shopping habits of many persons have drastically changed. The car insurance industry hasn't remained untouched by these changes. On the internet, drivers can compare insurance prices and find out which sellers have the best offers. View photos The advantages of comparing online car insurance quotes are the following: Online quotes can be obtained from anywhere and at any time. Unlike physical insurance agencies, websites don't have a specific schedule and they are available at any time. Drivers that have busy working schedules, can compare quotes from anywhere and at any time, even at midnight. Multiple choices. Almost all insurance providers, no matter if they are well-known brands or just local insurers, have an online presence. Online quotes will allow policyholders the chance to discover multiple insurance companies and check their prices. Drivers are no longer required to get quotes from just a few known insurance companies. Also, local and regional insurers can provide lower insurance rates for the same services. Accurate insurance estimates. Online quotes can only be accurate if the customers provide accurate and real info about their car models and driving history. Lying about past driving incidents can make the price estimates to be lower, but when dealing with an insurance company lying to them is useless. Usually, insurance companies will do research about a potential customer before granting him coverage. Online quotes can be sorted easily. Although drivers are recommended to not choose a policy just based on its price, drivers can easily sort quotes by insurance price. Using brokerage websites will allow drivers to get quotes from multiple insurers, thus making the comparison faster and easier. For additional info, money-saving tips, and free car insurance quotes, visit https://compare-autoinsurance.Org/ Compare-autoinsurance.Org is an online provider of life, home, health, and auto insurance quotes. This website is unique because it does not simply stick to one kind of insurance provider, but brings the clients the best deals from many different online insurance carriers. In this way, clients have access to offers from multiple carriers all in one place: this website. On this site, customers have access to quotes for insurance plans from various agencies, such as local or nationwide agencies, brand names insurance companies, etc. "Online quotes can easily help drivers obtain better car insurance deals. All they have to do is to complete an online form with accurate and real info, then compare prices", said Russell Rabichev, Marketing Director of Internet Marketing Company. CONTACT: Company Name: Internet Marketing CompanyPerson for contact Name: Gurgu CPhone Number: (818) 359-3898Email: [email protected]: https://compare-autoinsurance.Org/ SOURCE: Compare-autoinsurance.Org View source version on accesswire.Com:https://www.Accesswire.Com/595055/What-Are-The-Main-Benefits-Of-Comparing-Car-Insurance-Quotes-Online View photos


to request, modification Contact us at Here or [email protected]