The third quarter of 2008 saw a marked reduction in the number of deals that completed in the UK. However, for those that did, prices held steady. The Private Company Price Index (PCPI) p/e ratio for sales of companies to trade acquirers was 11.5 times, up marginally on the previous quarter's 11.3 times. Similarly, the Private Equity Price Index (PEPI) p/e ratio was 11.2 times which remained relatively unchanged from the previous quarter's 11.1 times.
To recap, the PCPI, compiled by BDO Stoy Hayward, tracks the sale prices of large businesses as a multiple of their after tax earnings. However, as owner managed profits tend to be understated to avoid taxation then the multiples will tend to be overstated as the information is gleaned from publicly available information.
By comparison, the FT Non-Financials Index (FTNF) fell 11 per cent this quarter from 12.4 times to 11.0 times, most noticeably hit by the turmoil in the markets caused by the collapse of the banking sector in the second half of September.
Full report available in our subscriber section.
For sale is a long-established tree surgery and arboricultural services business with an excellent reputation, serving both domestic and commercial sectors across Southern England, including the Home Counties and London.
An opportunity has arisen to acquire a mechanical engineering company specialising in the Water Industry. Benefitting from over 3 decades of trading, this business has built a solid and long standing client base comprised of prominent UK utility comp...
An opportunity has arisen to acquire a reputable IT support and development services provider with a UK-wide client base and a proven record for innovation and resilience in the constantly evolving IT sector. Throughout its 25+ year trading history,...
Business Sale Report is your complete solution to finding great acquisition opportunities.
Join today to receive:
All this and much more, including the latest M&A news and exclusive resources
Please choose your settings for this site below. For more information please read our Cookie Policy
These cookies are necessary for our website to function properly and provide you with access to all features.
These are analytics cookies that help us to improve the way our website works.
These are used to improve the functional performance of the website and make it easier for you to use.