Private equity dealmaking in Israel was down significantly, by 39 percent, in 2013 to USD 2.2 billion, according to Reuters, citing the latest IVC Research Center data. The report said that the reasons for the decrease include competition from strategic buyers who offer higher valuations, private equity funds being more focused on exits, and a cautious investment sentiment.
But new regulations about company ownership are expected to give dealmaking in Israel a boost in 2014. The IVC said that a large number of companies are expected to be on the shelf as a result of Israel’s recent legislation to restrict economic concentration and holding company structures means that the coming year will offer significant opportunities for PE investment. The largest deal of 2013 was a USD 500 million buyout of Alliance Tire Group by KKR. (Image source: IVC)