Private Equity professionals are more pessimistic compared to the previous year and see increased competition from Chinese Investors

According to the recently published “European Private Equity Outlook 2017” by the consulting firm Roland Berger, PE professionals are slightly more pessimistic regarding the involvement of PE companies in M&A deals. Only 52% of the participants expect a growing number of M&A transactions with PE Involvement this year, indicating a drop by 12% compared to the previous year. Major reasons for this development are political events such as Brexit negotiations, the transition of power in Washington and the upcoming elections in France and Germany.

Moreover, the more than half (57%) of PE professionals expect an intensifying competition for deals from Chinese investors in 2017, especially in the sectors of capital goods & engineering, and automotive. By comparison only 7% expect a decrease in competition from Chinese investors. Reasons for this development include among others the favourable regulatory and financing environment and pursuit of long-term and sustainable growth.

Overall, the participants expect less attractive targets this year compared to the previous year. Nevertheless, the mid/small-cap segment, companies valued at less than 50m EUR, in particular is expected to be very important in 2017. Especially family-owned companies are seen as a good source of attractive PE deals. Consequently, biz4.sale is also very interesting for PE investors!

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