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Analysts from Close Brothers Corporate Finance believe the gradual return of the wider M&A market and growing interest in private equity transactions will see more deals completed by the close of 2005.

By the second quarter of 2005, 11 deals had already been confirmed, with more in the pipeline compared to 22 throughout 2004. Some experts believe this year's figure will exceed a deal volume peak of 24 in 2000 and 2003.

Mark Barrow, head of private equity coverage at Close Brothers, believes more management teams are attracted by private ownership deals "where they can execute a strategy away from the spotlight".

He added that red tape in the stock markets and equity incentives which public markets can't provide have further fuelled the desire among deal makers to complete private equity transactions.

"With so much money chasing deals, there are too few private equity deals available," he said. "As well as pushing up pricing and debt levels, this is forcing private equity groups to look to the public markets for available transactions. With such demand we expect to see over 30 private-to-public deals in 2005."

Barrow also said that board members who are more willing to reveal their books to potential acquirers have contributed to the increased number of private-to-public deals. And he believes more deals will soon follow. "We see no reason for the upsurge in private to public to cease," he said.

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