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M&A Data Confirms Fierce Competition in Europe for PE Players

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April 3, 2014

Private equity-backed mergers and acquisitions (M&A) in Europe fell by almost a third to USD 55.2 billion from a year ago, according to Thomson Reuters. PE firms accounted for only 8 percent of M&A deals year to date, compared to 10 percent. Drivers of the shrinking of PE’s share of the market, include fierce competition from the public markets, and competition for assets, which leads to higher valuations and unattractive multiples. In addition to expensive assets, funds are also facing competition strategic investors, said the Reuters report. The European trend contrasts with Asia Pacific M&A, where PE firms had a stellar first quarter, according to Dealogic.

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